Is it time for alt season again? Looking at this simple divergence indicator (comparing the total cap to total cap minus BTC), it looks like alt season could be approaching.
Indeed, while we are starting to see divergence between the cap with BTC (orange line) and the altcoin cap (grey bars), there isn’t the type of divergence that typically gets labeled “alt season yet.”
In other words, despite some nice price action in alts we aren’t there yet. This is partly because large caps haven’t moved, while mid small caps mostly have (ETH is tracking BTC, while Doge rips for example). A true alt season likely moves some large cap alts, so let’s watch out for that and keeping an eye on divergence.