Altcoin Season Could Break Out in March? New Signals Are Emerging
New technical signals suggest an altcoin season might begin in March, despite current investor caution favoring Bitcoin.Summary
Despite fragile market recovery in February, analysts are anticipating a potential altcoin season in March based on emerging signals, though investor sentiment remains cautious, favoring Bitcoin.
Data from CryptoQuant shows only 5% of Binance altcoins trade above their 200-day SMA, but historical patterns suggest this low ratio, having reached its fifth month, could precede a demand boost. Furthermore, the OTHERS/BTC chart shows positive reversal signs, with the MACD crossing above its signal line, mirroring conditions before major rallies in 2017 and 2020, leading analyst Blade to predict a major altseason is coming.
However, investor caution persists, evidenced by the ratio of altcoin trading volume to Bitcoin volume on centralized exchanges (CEXs) hitting a one-year low near 2.2, indicating capital concentration in Bitcoin. The Altcoin Season Index is currently at 43, far below the 75-point confirmation threshold, suggesting any potential March rally may be selective and driven by strong fundamentals.
(Source：BeInCrypto)