Over the last few weeks, the question on everyone's lips has been, "Is this the bottom for altcoin?"
This is a legitimate question because, as many know, the entire crypto market is in the middle of a harsh winter that has left many liquidated, close to liquidation, or far from their point of entry on trades.
Over the last few days, Bitcoin has reclaimed its previous lows around the $18,000 zone. Ethereum, to have followed suit, plummeting to the $1300 zone.
Together, these two cryptos have formed an alliance that has dragged the rest of the crypto market down by the neck.
However, in the middle of any harsh crypto winter, traders and investors will always look for indicators to guide their entry and exit into the market.
The main purpose of these indicators is as a means to identify the next altcoin season and be able to get in early before the market takes off. So far, some of these indicators have begun to show favorable signs.
For example, as shown in the chart above, more than half the altcoins in the market have outperformed bitcoin in the last 90 days. According to data from the Blockchain center, this is a clear signal that another altcoin season may be on its way to us.
There are a few altcoins that are outperforming bitcoin since somedays
In first place is $LIDO, crowned as the best-performing altcoin in 2022. Lido is a liquid staking solution for Ethereum and has gained 222.4% over the last 90 days.
Followed closely by lido is Chiliz or CHZ, the official fan token of the socios.com network and has gained about 154% in the last 90 days.
Conversely, over the last 90 days, bitcoin has recorded a loss of -6.6%.
Many people believe that an altcoin season is a period of gains. It is true that in an altcoin season, most altcoins start to outperform bitcoin by long margins. However, major factors like market volatility, for example, can determine how much profits investors can make.
This is why investors and traders are usually encouraged to diversify their portfolios.
One of the biggest indicators of an incoming altcoin season is a decline in bitcoin's market dominance by market cap.
Bitcoin's market cap has been declining over the last few days, as capital is beginning to flow into other blockchains, services, and products.
According to tradingview, bitcoin's dominance now sits at around 40.95% at the time of writing.
Meanwhile, bitcoin continues to struggle to stay afloat as the bears appear to be winning. It currently trades at $18,600 and could trade even lower to the $17,000 level if the bulls fail to defend this critical support.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)