Altcoins Dominate December 2024: Season Index at Yearly High

Altcoin Season Index hits 87, showing altcoins outperforming Bitcoin.
$550B resistance remains a major hurdle for further growth in the altcoin market cap.
Analyst highlights reset funding rates and advises accumulation of high-potential assets.

The crypto market has shifted gears with altcoins in the spotlight as the Altcoin Season Index surge continues. According to CoinMarketCap, the index has jumped to 66, highlighting strong altcoin performance compared to Bitcoin.

This metric shows the dominance of altcoins, with most of the top 100 cryptocurrencies (excluding stablecoins and wrapped tokens) beating Bitcoin’s performance. The Altcoin Season Index surge has been evident since late September, peaking at 87 on December 4, 2024—its highest level this year. This trend underscores the rising momentum in the altcoin market, now approaching a capitalization of $1 trillion.

Analyst’s Take on Altcoin Season

Crypto analyst MikybullCrypto posted on X about the importance of the current Altcoin Season. He highlighted the strong momentum in the market and noted that altcoin funding rates have fully reset.

According to his analysis, this phase presents a lucrative chance for traders to buy high-potential assets. But he also advised caution, urging traders to watch accumulation zones and be taking note of resistance levels.

He also pointed out that the total market cap of altcoins (excluding the top 10) is $373.78 billion as of December 2024, with a daily decline of 0.29%. However, the market faces strong resistance near $550 billion, which has historically posed challenges.

This resistance matches the selling pressure from late 2021, creating a barrier to further growth. Technical indicators for altcoins are mixed. The RSI is at 64.54, nearing overbought territory and suggesting a potential slowdown in momentum.

Fibonacci retracement levels show the market previously found support around 0.382 ($161.9 billion), recovering from the 2022 downturn. While the current trend shows progress toward retesting previous highs, a failure to break the $550 billion resistance could result in consolidation or correction.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.