Here's the Current Status of the Altcoin Season Index! Analyst Deeply Examined the Potential Altcoin bullish!

Crypto analyst Simeon Koch, in his evaluation, warned about the approaching altcoin season by drawing attention to Bitcoin's market dominance.

According to Koch, for the altcoin seasons to start, Bitcoin's market dominance ratio must first reach a cycle peak of ( dominance. This ratio had peaked at around 70% in previous bull markets. Currently, this ratio is around 66% and showing an increasing trend.

Over the weekend, the attack on Iran's nuclear facilities by the US raised tensions in the Middle East. While US President Donald Trump described the operation as a 'complete success,' the Iranian government reacted by accusing the US of crossing red lines and declaring that all US bases in the region are potential targets. Iran also threatened to halt maritime traffic in the Strait of Hormuz.

These developments have increased the risk perception in financial markets. Similar to traditional crisis periods, investors turned away from risky assets, such as )altcoins(, towards safe havens like )gold, oil, and in this case Bitcoin(. This has increased Bitcoin's market dominance to the highest level in recent years at 66%. This increase is considered the biggest obstacle in front of the start of the altcoin season. However, Iran subsequently hit the US base in Qatar in advance, reducing the tension.

Bitcoin dominance expresses the ratio between the market value of Bitcoin and the total value of the entire crypto market. When this ratio increases, it means that the majority of investors are holding their money in Bitcoin. When it decreases, capital flows towards altcoins. This shift is seen as one of the key signs of the altcoin season.

Analyst Simeon Koch said, "Bitcoin dominance usually peaks towards the end of bull cycles and then declines. This decline is accompanied by sudden and sharp increases in altcoins." However, he also added that despite the high profit potential of this period, it also carries serious risks.

Koch noted that technical indicators indicate approaching a peak formation in Bitcoin dominance. Indicators such as RSI )Relative Strength Index( are in overbought territory. Additionally, the inverse correlation of the global liquidity index also suggests a possible decrease in dominance soon. If this scenario unfolds, it is indicated that a capital rotation towards altcoins could lead to the start of an altcoin season.

According to the analyst, when past cycles are examined, it is observed that the altcoin season usually begins when Bitcoin dominance continuously decreases for a few weeks or months. During these periods, the better performance of major altcoins like Ethereum, Solana, XRP compared to Bitcoin indicates an increase in investor risk appetite.

Tools like the Altcoin Season Index are also used to track this situation. If in the last 90 days, 75% of the largest altcoins have risen more than Bitcoin, it indicates the start of an altcoin season. The Altcoin Season Index is currently at 16, showing that Bitcoin's dominance continues.

Koch stated that the altcoin season is the period in the crypto market where the highest gains are seen but also carries the highest risks: "Investors may want to hit the dance floor when the music is playing at its loudest. However, it is also necessary to see the way out in time. The altcoin season may come to an end at its peak and be followed immediately by a strong bear market.

*Not investment advice.

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