Altcoin Season On Horizon? On-Chain Data Suggests A Positive Outcome For Altcoins

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Though Bitcoin has regained its $20,000 range and is trading slightly above the $21,000 level, the lead cryptocurrency is still down by 75% from its all-time high.

On the contrary, there are a few positives that are seen around altcoin trading. The altcoins price movements around the crypto space is depicting a bullish outlook for the crypto space.

At the moment, Bitcoin is trading at $21,522 down by 0.09% in the last 24hrs.

As per CryptoQuant, a crypto trading data provider, the activity in terms of altcoins has increased in most of the crypto exchanges. When the on-chain data is considered, the environment around Bitcoin is not that appealing. This also points out that there is a surge in whale accumulation instead.

After Bitcoin experienced a bearish pull for more than a month, now the flagship currency has entered a recovery phase and is struggling to hold on to the range. However, this is not the reason for a spike in altcoin accumulation by whales.

Possible Reasons For An Increased Altcoin Activity

The first possible reason could be due to over-the-counter trading with other whales through custody services. The next reason sighter by CryptoQuant is the whales opening long or short positions where the altcoins are being used as security.

Meanwhile, the upcoming altcoin projects in the crypto exchanges and crypto hedge fund liquidation could also be serving an increased altcoin activity. However, these factors might not be the exact reason for an increase in altcoin purchase because it’s not very likely to see whales depositing their assets in exchanges at these prices.

On the contrary, whenever there is an increase in altcoin accumulation, there is a high possibility for a bottom. As Bitcoin price is struggling to see a bull run and the crypto winter has not yet settled down, Bitcoin price is expected to drop in the coming days. Nevertheless, the slight surge in the price of Bitcoin did give relief to investors of the altcoin.