According to a cryptocurrency analyst, the recent volatility of Bitcoin’s dominance may be an indication that altcoin season will arrive sooner than most traders think.
“The reason why you should have confidence in the altcoin price action is because the BTC Dominance chart looks bearish and has looked bearish for many weeks,” Crypto analyst Matthew Hyland said In an X-post on Friday.
“The downtrend is favorable to continue; therefore, this relief rally has been a dead cat bounce in a downtrend,” Hyland stated. Hyland said in a video posted on Saturday. said Bitcoin has experienced a recent (BTCThe price of the.com domain may have been manipulated by financial giants.
“Over the past month, I’ve kind of just maintained the view that a lot of this was really just manipulation, essentially for Wall Street to set themselves up,” He made a claim.
Bitcoin dominance dropped by 5% in May
Bitcoin dominance (which measures Bitcoin’s total market share) is down by 5.13% in the last 6 months and holds 59.90% as of the publication date. according TradingView is a trading platform.
Bitcoin only fell below the $100,000 level on November 4 for the first four-month period, causing a broader concern in the market about what the price of this asset will do next.
Bitcoin’s price is $102,090, as at publication. according CoinMarketCap is a great place to start.
Hyland may have speculated about the potential of altcoins to gain momentum in the future, but other indicators point towards a Bitcoin-centered market.
CoinMarketCap Altcoins Season Index Currently, the score is 28 out of 100. “Bitcoin Season” territory.
Altcoin cycle may differ from the previous cycles
Last time it signaled “Altcoin Season” On Oct. 8th, just a few days after Bitcoin reached a new high of $125100, traders seemed to be anticipating a further rotation of capital up the risk-curve.
The indicator has quickly shifted to a risk-off setting after the market collapse of October 10, which resulted in around $19 billion in leveraged positions The crypto market is wiped out.
Related: Bitcoin price crash calls are coming from self-serving sellers: Analyst
Crypto executives predict that the altcoin market will be concentrated and more selective than previous cycles.
Maen Ftouni was recently named CEO of CoinQuant. This company produces trading algorithms. said that older cryptocurrencies With an Exchange-Traded Fund (ETF), or expecting to receive one, will absorb much of the capital spent during the next altcoin market.
“Not every single coin is going to have massive returns; the liquidity is going to be concentrated into certain places, dinosaurs being one of them, of course,” Ftouni sa.
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Source: cointelegraph.com
