Bitcoin's Slide Triggers 'Altcoin Season' Indicator in Reverse

The Altcoin Cycle Signal, a widely watched indicator, has flipped to 'altcoin season', but for reasons opposite of what the label suggests. The signal tracks relative performance, and it reads 86, indicating that alternative coins (alts) are not rallying. Instead, Bitcoin is simply falling faster than they are.

According to Glassnode, alts have steadied after nearly two years of declines, while Bitcoin has dropped hard, sliding back toward $63,600. As Glassnode puts it, 'Bitcoin is still doing most of the work.'

A real altcoin season would see capital rotating into smaller tokens as they climb. But in this case, the signal's bullish turn for alts is due to Bitcoin's selling off, which is bearish for the market as a whole.