Crypto: Alt season has just begun, according to this Glassnode indicator

Glassnode suggests the market may be shifting toward a new alt season. Its altcoin cycle indicator has moved back into favorable territory, as Bitcoin reclaims key technical levels and market sentiment climbs into the 'extreme greed' zone. Whether this budding signal will be confirmed in the coming weeks remains to be seen. The article Crypto: Alt season has just begun, according to this Glassnode indicator first appeared on Cryptoast.

The digital asset market is undergoing a major transitional phase, marked by a widespread resurgence in optimism. According to on-chain data published by Glassnode, the altcoin cycle indicator has just shifted into a favorable regime, signaling a potential end to Bitcoin's exclusive dominance. Unlike the trends observed last August, where the price of BTC rose in isolation, the current climate is characterized by increased market-wide participation, leading to a stronger correlation across various cryptocurrencies.

From a technical standpoint, the outlook is equally encouraging for the market leader. Bitcoin has managed to break out of a nearly 300-day stagnation period, reclaiming its long-term moving averages—a symbolic milestone that reinforces investor confidence. With the price flirting with the $86,000 mark and a notable weekly gain for Ether, structural indicators appear to confirm the onset of a durable bullish trend, provided these new levels are consolidated as solid support in the coming days.

Investor sentiment reflects this enthusiasm as euphoria builds. The Fear & Greed Index now stands at 78, pushing the market into the "extreme greed" zone for the first time in over a year. While this collective mindset demonstrates a renewed appetite for risk, it also warrants caution. Some experts point out that while this level of excitement is standard at the beginning of an upward cycle, it nonetheless requires confirmation from trading volumes to validate the robustness of the current rally.

The implications for portfolio holders are significant, marking the beginning of a sector rotation phase that is historically conducive to volatile returns on altcoins. However, divergences between analytical tools—such as the Blockchain Center index, which remains in the neutral zone—suggest a prudent approach. Investor success in this environment will depend on their ability to monitor liquidity inflows and BTC stability, while avoiding the pitfalls of impulsivity in an environment that is beginning to show signs of overheating.