Glassnode Altcoin Indicators Signal 'Alt Season'...Tom Lee "Explosive Rally is Coming"

▲ Altcoin

As the virtual asset rally, which had been concentrated on Bitcoin (BTC), spread across major altcoins, key on-chain indicators officially signaled the entry into 'altcoin season'.

According to the virtual asset specialized media outlet Cryptopotato on September 22 (local time), Glassnode's 'Altcoin Cycle Signal' recently transitioned from Bitcoin season to altcoin season. This indicator measures the relative strength by comparing the performance of a market-capitalization-weighted basket of 250 altcoins, excluding stablecoins, to Bitcoin. Unlike the August rally, which skipped altcoins and was solely dominated by Bitcoin, the recent buying momentum from market participants has spread evenly across virtual assets.

The robustness of the market structure was confirmed despite macroeconomic headwinds. The virtual asset market faced macroeconomic headwinds last week, including the failure of the US crypto market structure bill to pass a vote and the Federal Reserve's (Fed) first interest rate hike since July 2023. At the time, Bitcoin fell to around $75,000, its lowest in weeks, but rebounded above $80,000, reclaiming its 50-week moving average.

While Ethereum (ETH) has surpassed $2,700, leading the price rebound of major altcoins, market evaluations are divided. Analyst DANNY warned that the current chart structure is a trap and could fall to $1,500 before a full breakout. Conversely, Tom Lee, Chairman of research firm Fundstrat, cited stable international oil prices and calming interest rates as reasons, optimistically stating, "All conditions are met for an explosive rally to unfold this month."

Coupled with Bitcoin's stabilization at $87,000, the transition of Glassnode's altcoin cycle indicator has further heightened expectations for capital rotation in the market. Market attention is focused on whether the liquidity accumulated during Bitcoin's short-term consolidation will officially move to Ethereum and major large-cap altcoins.

[Article Key Summary]

-Glassnode's altcoin cycle indicator has transitioned to altcoin season, driven by improved relative strength of 250 altcoins.

-Bitcoin reclaimed its 50-week moving average, spreading warmth across the market despite the negative news of the failed US crypto market structure bill and interest rate hike.

-Regarding Ethereum's breakthrough of $2,700, the 'trap theory' of a fall to $1,500 and Tom Lee's forecast of an explosive rally stood in stark contrast.

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