Avalanche (AVAX) Shows Strength Against Bitcoin (BTC) in Valuation; Could It Outperform BTC in Q4?

Avalanche [AVAX] is a smart contracts platform known for its ability to scale infinitely and finalize transactions in less than a second

Avalanche (AVAX) has shown bullish signs as the crypto markets prepare for the final quarter of the year. While geopolitical tensions may impact the overall sentiment, key metrics suggest that AVAX is positioned for potential outperformance.

AVAX has flipped the bull market support band, now trading above the 20-week simple moving average (SMA) and the 21-week exponential moving average (EMA). This bodes well for the token’s long-term outlook.

Many traders are now wondering if AVAX could see significant gains and potentially even outperform Bitcoin (BTC) in Q4. Let’s analyze some crucial metrics to assess this possibility.

Examining the AVAX/BTC valuation over the past two months shows that Avalanche has demonstrated more strength than Bitcoin. Currently, the AVAX/BTC valuation stands at 0.000450, reflecting AVAX’s consistent growth for the last two months. The chart shows a steady rise, but AVAX has yet to break a short-term high that would fully flip Bitcoin.

If Bitcoin leads the anticipated bullish quarter, Avalanche could face challenges in maintaining its edge. However, AVAX has established an early lead against BTC, but it remains uncertain whether this will hold.

Data for the past week, month, and quarter shows AVA0.00045Gaining 2.81%, 1.79%, 20.23%, and 2.23% respectively against Bitcoin, setting the stage for potential outperformance in Q4.

Another key metric is Avalanche’s 365-day return on investment (ROI), which currently stands at 3.067. This indicates that AVAX’s year-to-date returns are positive, outperforming the average for the year. Many traders holding AVAX are in profit, and with the positive ROI, these traders are less likely to sell their holdings, opting to hold for further gains. This dynamic could contribute to AVAX’s continued rise in price, further supporting the case for a strong performance in the final quarter of the year.

The Altcoin Season Index offers another perspective on Avalanche’s potential to outperform BTC. This index tracks how many top 50 altcoins have a 90-day ROI greater than Bitcoin. The latest reading is 36.73, indicating it is neither Bitcoin nor altcoin season. Only 18 out of the top 50 altcoins currently out-perform BTC, meaning less than 75% of altcoins are ahead of Bitcoin.

With BTC dominance at high levels, this suggests that both BTC and altcoins, like AVAX, are battling for dominance in Q4. Any shift in BTC dominance could trigger a reversal, potentially favoring AVAX’s price surge.

Avalanche is well-positioned for a bullish Q4, but its outperformance of BTC is uncertain and dependent on several market factors.

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