Analyst Dennis Liu: Altcoin Season Has Not Yet Begun

Analyst Dennis Liu stated that the altcoin season has not yet begun, as on average, altcoins are only 10% ahead of Bitcoin since its bottom. According to him, a few strong coins create the impression of an active market, while the data does not confirm this. Liu focused on the Total 2-to-Bitcoin ratio, which compares the market cap of cryptocurrencies excluding Bitcoin to BTC, and noted that the chart looks "very flat." Since Bitcoin's bottom, altcoins have shown an average growth of 10%, which is far from the broad growth comparable to previous altcoin seasons.

Among the altcoins showing good results, Liu highlighted Zcash, which has grown by more than 726% over the year, as well as Venice and Quant, the latter of which recently surged by 530%, from $59 to $370, before settling around $255. However, Liu emphasized that these are isolated examples. Not all altcoins can outperform Bitcoin; even XRP could not surpass it, and Ethereum, Solana, and BNB barely outpace it. "This is why I say that altcoins are actually still very cheap. And we are not yet confirming the scenario of a full altcoin season," Liu explained. When asked how far this event is from us, the analyst replied: "far from close."

While Bitcoin is stuck at $87,000, having retreated to $85,000, it has fluctuated between these levels in recent days, with a market capitalization of $1.72 trillion and a 58% share of the total crypto market. Larger altcoins have shown slow development over the past 24 hours. Ethereum holds above $2,700, XRP is at $1.50. BNB, Solana, Dogecoin, and Chainlink have slightly lost value, while RAIN was one of the biggest losers, dropping more than 7%, whereas FIL and ZRO rose by 8% and 10% respectively. Liu also warned traders against expecting a new Bitcoin record before turning their attention to altcoins. He noted that such a tactic worked in 2017 and late 2020 but did not pay off in 2024 when Bitcoin set a new record while many altcoins continued to lose their positions. He recommends trading individual altcoin rallies rather than waiting for a broad signal. In another video, Liu named $83,000 as the daily level for Bitcoin, a drop below which could send it to support in the bull market at $78,000, while holding above this level leaves hopes for exceeding $87,000.