The altcoin market is expected to enter a third upward cycle. The 'Altcoin Season' index can effectively measure the overall market sentiment of altcoins. According to historical data, when this index is below 20, it indicates a relatively tepid market with lower risks, making it a valuable time for positioning; when the index is above 80, it signifies an overheated market with increased risk of a pullback.
Since the start of this bull market, altcoins have experienced two significant upward trends in October 2023 and November 2024. During both of these upward trends, the 'Altcoin Season' index rapidly climbed from below 20 to above 80. Currently, this index is once again showing a trend of breaking upward, which may signal that the third wave of the market is imminent.
From a historical perspective, once Bitcoin breaks through previous highs, mainstream capital typically flows into the altcoin sector, thereby accelerating the rise of altcoins. Therefore, a new high for Bitcoin is likely to be a key driving factor for the strength of altcoins. #山寨季何时到来
