Crypto Analyst: There hasn’t been an altcoin season in 2023

  • Benjamin Cowen states that there has been no altcoin season in 2023.
  • He explains the dynamics of the crypto market using the ADI indicator.
  • It is worth noting that altcoins with lower market caps have performed well.

Benjamin Cowen, CEO of Into The Cryptoverse, shares a unique perspective on the 2023 altcoin season. Contrary to popular opinion, he explains in a recent video using the Advance Decline Index (ADI) indicator and other analysis tools how the crypto market dynamics played out in that year. Let’s dive into Cowen’s insights and uncover the truth about the altcoin season.

According to Cowen, the ADI for the altcoin market has recently dropped below its 2019 lows. He also noticed that the ADI reached a higher point in 2019 compared to 2023. Cowen, a well-known analyst, believes that the current ADI chart suggests that we are not in an altcoin season. Furthermore, he points out that many altcoins are experiencing new lows.

Many analysts tend to choose a handful of successful altcoins and use them as the yardstick for the whole market. Cowen recognizes that some altcoins have done well this year but points out that most of them are newly introduced cryptocurrencies, unencumbered by the bear market’s impact.

According to Cowen, altcoins that perform well tend to have lower market caps due to their novelty in the crypto market. However, he also observed that altcoins with higher market caps, which performed well this year, often experienced significant sell-offs during bear markets. This suggests that much of the bullish movement could be a mean reversion.

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The analyst compared the ADI to the overall crypto market cap. The ADI is going down while the market cap remains steady. He found that the market cap grew earlier this year, following Bitcoin’s surge. Cowen also discovered that Bitcoin reached new highs, even as recently as July. Meanwhile, most altcoins didn’t fare as well.

As a result, Cowen determined that if the total market cap remains stagnant and altcoin prices continue to drop, it suggests that funds are shifting from the altcoin market to Bitcoin. This goes against the common belief of analysts who propose that we are currently experiencing an altcoin season.

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