Less than 72 hours to the monthly close, it is more evident that Bitcoin’s (BTC) price will likely end the turbulent August with a bearish outlook. Nevertheless, Bitcoin price established a robust support level above $58k in the past weeks, thus positioning the altcoin industry for a further rebound in the near term.
Correlation Study Between Altcoin Industry and Bitcoin
According to a technical crypto analysis by CryptoQuant, the crypto industry is likely to continue in short-term consolidation as the correlation between altcoins and Bitcoin remains positive. As a result, it is safe to deduce that the positive correlation between Bitcoin and the altcoins, amid heightened fear of a possible crypto selloff in September, could present long-term buyers with an opportunity to accumulate more at discounted rates.
According to CryptoQuant’s data, altcoins like Bancor Network (BNT), Axie Infinity (AXS), Chainlink (LINK), Algorand (ALGO), and Cardano (ADA) are showing the highest correlation with Bitcoin.
On the other hand, CryptoQuant’s data shows that altcoins like Dash (DASH), Curve DAO (CRV), dYdX (DYDX), BNB, and My Neighbor Alice (ALICE) have the lowest correlation levels, indicating they are moving more independently of Bitcoin.
Timelines for the Anticipated Altseason
The timeline for the next altcoin bull run remains of utmost interest among crypto investors. The yearning for a parabolic altcoin rally is evident after the crypto trades remained trapped in a bear market for the past three years.
The anticipated interest rate cut in the United States before the end of this year, amid the upcoming general elections, is expected to trigger the next phase of the crypto bull market, which will largely favor the altcoin industry.
The inevitable reversal of the macro Bitcoin dominance in the near term, amid rising demand for web3 protocols and digital assets, is a top indicator for an upcoming altseason.
