Solana

Bitcoin

Strong

Rekt

<h2 id="key-points">Key Points</h2>
<li>Bitcoin (BTC) experienced a 4% correction on Feb. 20, raising questions about the state of the altcoin market.</li>
<li>Analysts suggest that this is part of the Bitcoin halving cycle, and altcoins have shown promising performance over the past year.</li>
<p>On February 20, <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> saw a significant drop in value, falling by 4% from a high of $53,019 to a low of $50,812. This threatened to erase the gains made in the previous week.</p>
<p>This correction in Bitcoin’s value caused traders to reassess the overall state of the cryptocurrency market, sparking discussions about the potential arrival of the altcoin season, also known as ‘altseason’.</p>
<h2 id="reasons-for-bitcoin-s-value-drop">Reasons for Bitcoin’s Value Drop</h2>
<p>Traders and market analysts are attributing the current price drop to the 5 phases of the Bitcoin halving cycle, suggesting that BTC might be in the midst of a pre-halving retrace. This is a period before the expected post-halving parabolic uptrend.</p>
<p>Crypto trader and analyst Rekt Capital posted a chart on February 15 suggesting that Bitcoin has “one last Pre-Halving Retrace left” before it resumes its uptrend.</p>
<p>Independent market analyst Sjuul warned that BTC’s funding rates were high, indicating a possible correction across the board. He described this as a potential “buy-the-dip” opportunity.</p>
<p>Market intelligence firm Santiment noted significant moves in “mid-tier traders often work as excellent signals for” profit taking and “dip buys.”</p>
<p>Santiment also pointed out that stablecoin holders with $10K to $100K added $44.3M in USDT in the past two weeks, indicating they might be preparing to buy the dip in case of a pullback.</p>
<h2 id="bitcoin-vs-altcoins">Bitcoin vs Altcoins</h2>
<p>Altcoins have performed impressively over the last year, with many posting double and triple-digit gains, and some even outperforming Bitcoin.</p>
<p>Data from CoinMarketCap shows that while Bitcoin has rallied 107% over the past 12 months, Solana (SOL) has gained 308%, Avalanche’s AVAX 80%, and Chainlink’s (LINK) 136%.</p>
<p>On-chain analytics firm Glassnode’s latest data shows that although “BTC and ETH are leading the pack, with year-to-date gains of 17.6% and 18.2%, respectively,” Bitcoin’s year-to-date performance surpasses the aggregate altcoin market cap.</p>
<p>Glassnode also points out that despite Ethereum (ETH) beginning to outperform BTC following the approval of the spot Bitcoin ETFs in January, its performance fell below Bitcoin’s on Feb. 8.</p>
<p>Glassnode further notes that Bitcoin continues to show dominance, seeing approximately “$20B in capital inflows per month at present.”</p>
<p>According to a report by Glassnode, “Bitcoin continues to lead with over 52% market share of the total digital asset market cap.”</p>
<h2 id="is-the-altseason-near">Is the Altseason Near?</h2>
<p>On February 18, independent analyst Stockmoney Lizards suggested on social media that many altcoins are about to skyrocket in the next altseason. He shared a chart showing that the altcoin market cap had scaled above a significant support area.</p>
<p>However, it might still be too early to confirm the arrival of the altcoin season. Glassnode’s altseason indicator has shown positive momentum since October last year and turned positive on Feb. 4.</p>
<p>Interestingly, the indicator has remained positive since then, suggesting that the market is now in a risk-on mode, showing the confidence that investors have in altcoins at the moment.</p>
<p>Blockchain Center data shows that only 59% of the top 50 altcoins have outperformed BTC during the last 90-day period. This percentage needs to move above 75% for an altseason to be declared.</p>
<p>Glassnode concludes, “our Altcoin Indicator suggests a more mature and possibly sustained uptick in Altcoin markets, however, it remains relatively concentrated in higher market cap assets at this time.”</p>
<p>This indicates that signs of an altcoin season are starting to emerge, but it may still be too early to definitively declare its arrival.</p>

Signs of Upcoming Altcoin Season Emerge Despite Bitcoin’s Strong Hold

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