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The crypto market has shifted gears with altcoins in the spotlight as the Altcoin Season Index surge continues. According to CoinMarketCap, the index has jumped to 66, highlighting strong altcoin performance compared to Bitcoin.
This metric shows the dominance of altcoins, with most of the top 100 cryptocurrencies (excluding stablecoins and wrapped tokens) beating Bitcoin’s performance. The Altcoin Season Index surge has been evident since late September, peaking at 87 on December 4, 2024—its highest level this year. This trend underscores the rising momentum in the altcoin market, now approaching a capitalization of $1 trillion.
Analyst’s Take on Altcoin Season
Crypto analyst MikybullCrypto posted on X about the importance of the current Altcoin Season. He highlighted the strong momentum in the market and noted that altcoin funding rates have fully reset.
Now get ready for the next phase of the #ALTSEASON that comes with a huge momentum.
— Mikybull 🐂Crypto (@MikybullCrypto) December 10, 2024
Alts funding rate has been fully reset.
This is not the time to panic but the time to accumulate the most potential ones. https://t.co/sqqG5HAEyp pic.twitter.com/EShyTPtWtE
According to his analysis, this phase presents a lucrative chance for traders to buy high-potential assets. But he also advised caution, urging traders to watch accumulation zones and be taking note of resistance levels.
He also pointed out that the total market cap of altcoins (excluding the top 10) is $373.78 billion as of December 2024, with a daily decline of 0.29%. However, the market faces strong resistance near $550 billion, which has historically posed challenges.
Read also: Bitcoin and the Altcoin Season Index Explained
This resistance matches the selling pressure from late 2021, creating a barrier to further growth. Technical indicators for altcoins are mixed. The RSI is at 64.54, nearing overbought territory and suggesting a potential slowdown in momentum.
Fibonacci retracement levels show the market previously found support around 0.382 ($161.9 billion), recovering from the 2022 downturn. While the current trend shows progress toward retesting previous highs, a failure to break the $550 billion resistance could result in consolidation or correction.
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