Bitcoin Hitting $120K Shows We’re About to Enter Altseason: Three Metrics Point to a Big Shift

Bitcoin continues to make new records and stay above the price level of $120k. Three indicators depict investors moving their funds into riskier cryptocurrencies and hint at a potential beginning of the new altseason.

Altcoin Index Soars, Reflecting Risk Appetite

The closely tailed Altcoin Index has risen by more than 300%, shooting up to 50 after previously standing at 15, indicating that altcoins are doing better and more traders are likely to take on increased volatility.

When the reading exceeds 50, this is usually an indication of a robust market performance apart from Bitcoin.

It implies that the money distribution among the cryptocurrencies seems to be less on Bitcoin and more on other alts.

Bitcoin Dominance Falls Below 58%

At the same time, the market dominance of Bitcoin has dropped below 58%, as compared to the 62% recorded only a few weeks back.

The reduced indication of dominance denotes that altcoins are capturing more shares of the total majority in the market as traders are diversifying into smaller projects.

In the past, the times of low Bitcoin dominance coincided with the strong altcoin rally, which further adds weight to the argument that altseason is coming.

Fear and Greed Index is in the Greed Zone

This is also a positive indicator: the Fear and Greed Index has stagnated in the Greed area since June 23. High levels of reading in greed indicate high market-level confidence and a fear of missing out (FOMO), which lends more probability that traders will be attracted to pursuing altcoins.

What Comes Next?

An increase in the Altcoin Index, a decline in the Bitcoin dominance, and high investor greed all imply that investors are moving their assets out of the relatively safe Bitcoin and into the overall altcoin market.

Now, traders are beginning to target known Layer-1 protocol coins, DeFi tokens, and memecoins with high potential in the weeks to come.

It is impossible to know when crypto cycles end, so corrections might arise, but the current statistics suggest that the upcoming future of this cycle belongs to altcoins.