The cryptocurrency cycle has entered phase 3. A sample of this is that Bitcoin (BTC) slows down cryptocurrencies like upward rallies, ether (ETH), native currency of Ethereum, XRP records, and cryptocurrencies like XRP records.
There are also others such as Comlux (CFX), which has risen above 100% per week. Tazos (XTZ) has risen 65% over the past seven days.
At the time of publication of this memo, Bitcoin’s weekly performance is lower compared to the performance of major cryptocurrencies in the market, as shown in the image below.
To understand current market behavior, it is important to see how these cycles usually develop. As explained by Cryptonoticia, this process has historically been divided into four phases. The first starts with the strong impulse of Bitcoin and takes the price to a new historic maximum.
After that, the market will replace Phase 2 with a high level and stable BTC. Investors start looking for bigger yields in ethereum cryptocurrencyit generates a rebound in its price and a decline in Bitcoin domain on the market.
When ETH wins traction, phase 3. This is when capital began to flow towards other cryptocurrencies of large capitalization driven by the growth of ecological optimism.
Finally, if there is a lot of enthusiasm, the market enters phase 4, an example of speculative happiness. There, everything can rise without much foundation and generate significant profits, but the risk of sudden corrections also increases.
The question now is what conditions are missing for AltSeason to be fully confirmed? According to the BlockChainCentR index, 53% of cryptocurrencies have surpassed BTC performance in the last three monthsA number that approaches the 75% threshold required to check AltSeason.
It’s not yet activated at all, but investor enthusiasm has already expanded beyond Ethereum’s currency, driving other projects with big capitalization.
It is worth clarifying that this phase cycle is not strictly linear or guaranteed. After capital flows from BTC to other projects, the market can suspend, or even money can return to Bitcoin.
Additionally, AltSeason may not be deployed continuously, but can respond later in the year, depending on the various economic, regulatory factors, and even the sense of investors.
