Bitcoin

Parallel

<h2 id="quick-take">Quick Take</h2> 
<p>Historical analysis reveals a fascinating pattern between Bitcoin’s (<a href="https://cryptoslate.com/coins/bitcoin/">BTC</a>) risk profile and the market performance of altcoins. The Bitcoin Risk Signal, a measure of the potential for a significant drawdown in Bitcoin’s price, is currently at ‘0,’ indicative of the least risk. Over the past year, there have been four instances of such ‘zero-risk’ accumulation periods for Bitcoin, observed in February, April, July, and November. Each of these periods followed a surge in Bitcoin’s price, hinting at the potential correlation between price appreciation and accumulation.</p> 
<figure id="attachment_371563" aria-describedby="caption-attachment-371563" style="width: 100%" class="wp-caption aligncenter">
 <figcaption id="caption-attachment-371563" class="wp-caption-text">
  Bitcoin risk signal: (Source: Glassnode)
 </figcaption>
</figure> 
<p>Parallel to the Bitcoin narrative, the Altcoin Cycle Signal provides insights into the performance of altcoins relative to Bitcoin. This indicator, calculated using the price data of the top 250 altcoins by market capitalization (stablecoins excluded), depicts the market’s inclination towards Bitcoin or altcoins. During periods identified as ‘Bitcoin Season,’ Bitcoin tends to outperform the altcoin basket, while the reverse holds true during ‘Altcoin Season.’</p> 
<p>Interestingly, the Altcoin Cycle Signal has been observed to follow Bitcoin’s accumulation consolidations, as seen in February and August. Currently nearing 50, the altcoin signal could imply an upcoming phase where altcoins start to outperform Bitcoin, provided the latter continues its accumulation trend.</p> 
<figure id="attachment_371565" aria-describedby="caption-attachment-371565" style="width: 100%" class="wp-caption alignnone">
 <img class="wp-image-371565 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/11/alts.png" alt="Altcoin cycle signal: (Source: Glassnode)" width="1800" height="1013" srcset="https://cryptoslate.com/wp-content/uploads/2023/11/alts.png 1800w, https://cryptoslate.com/wp-content/uploads/2023/11/alts-300x169.png 300w, https://cryptoslate.com/wp-content/uploads/2023/11/alts-1024x576.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/11/alts-768x432.png 768w, https://cryptoslate.com/wp-content/uploads/2023/11/alts-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px">
 <figcaption id="caption-attachment-371565" class="wp-caption-text">
  Altcoin cycle signal: (Source: Glassnode)
 </figcaption>
</figure> 
<p>The post <a rel="nofollow" href="https://cryptoslate.com/insights/altcoin-cycle-signal-indicates-altcoins-could-take-the-limelight-in-new-market-phase/">Altcoin Cycle Signal indicates altcoins could take the limelight in new market phase</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.</p>

Altcoin Cycle Signal indicates altcoins could take the limelight in new market phase

Table of Contents

CryptoSlate

Other articles published on Nov 6, 2023

How to Buy Hedge Trade Coin?

Crypto Experts Are Refusing to Work for US SEC, The Reason Will Surprise You

Major crypto scam is being investigated by authorities in Himachal Pradesh

Ripple expected to shave off SEC’s $770m claim

South Korean cryptocurrency-only exchange Cashierest to close its doors

Bitcoin bulls’ victory over bears as BTC regains $35K?

Join our free newsletter for daily crypto updates!