Bitcoin Dominance breakdown – altcoins to run?

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As a seasoned crypto investor with several years of experience under my belt, I’m keeping a close eye on the current market dynamics and observing some intriguing patterns emerging among altcoins. While bitcoin continues to face challenges in making new all-time highs, it seems that altcoins are gearing up for their next big push in this bull market.

In the ongoing crypto bull market, altcoins may be preparing for their next significant surge as bitcoin fails to set a new record high. The decline in bitcoin’s dominance suggests that altcoins could potentially seize the limelight.

Altcoins suffer less than $BTC

Bitcoin’s rallies are often short-lived, as they’re swiftly followed by rejections. The latest development, which involved large amounts of Bitcoin being transferred from Mt.Gox wallets, might have triggered this response.

If Bitcoin experiences a minor setback and loses value, it’s common for altcoins to follow suit with a decline of their own. However, despite Bitcoin’s recent price drop, the overall market capitalization of altcoins hasn’t been hit as hard.

Ethereum is a major factor

As a crypto investor, I can tell you that Ethereum (ETH) has been a significant player in today’s market. The recent hiccup at Mt. Gox has been swiftly overcome, thanks in large part to Ethereum’s position as the second-largest cryptocurrency by market cap. The price of ETH is currently surging, fueled primarily by the approval of Spot Ethereum ETFs. I believe this positive trend will persist in the near term.

If Ethereum’s value is robust, other cryptocurrencies may mirror its trend. It’s possible that some altcoins will soon match Ethereum’s performance and even surpass it.

Bitcoin Dominance breaks trend on weekly time frame

From my perspective as a researcher studying the cryptocurrency market, the BTC Dominance chart currently holds significant significance. As depicted in the graph above, the dominance level has recently dipped beneath the trend line it had been adhering to since November 2022. With the weekly time frame in consideration, this downward shift carries substantial importance as a confirmation of the break is yet to be established through a closing candle below the current level by week’s end. The likelihood appears strong at the moment.

As an analyst, I’ve observed the daily chart displaying Bitcoin Dominance’s support levels. Notably, Bitcoin’s price has formed an M-shaped pattern above the 54% support. This bearish configuration, if validated, could potentially lead to a decline in price towards the 51% support level.

Altcoin season?

As an analyst, I would say: Based on my analysis, we’re not quite there yet in terms of an altcoin season. According to Blockchaincenter.net, we’re currently at a 35 on their Altseason Indicator. That figure is significantly lower than the required 75 for this market condition to officially take place.

Despite the current bull market for Bitcoin, it’s important to remember that altcoins also have potential for growth. The Bitcoin Dominance chart serves as a valuable tool in predicting when altcoins may experience their own surge in value. Keeping an attentive eye on this chart could prove beneficial for investors.

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2024-05-28 14:16