Recent fluctuations in Bitcoin’s dominance may be a sign that altcoin season is approaching sooner than many traders expect, according to a cryptocurrency analyst.
“The reason you should trust altcoin price action is because the BTC dominance chart looks bearish and has looked bearish for several weeks,” crypto analyst Matthew Hyland said. He said In X’s post on Friday.
“The downtrend is ripe for continuation; therefore, this relief rally was a dead bounce in the downtrend,” Hyland said. In a separate video on Saturday, Hyland He said The recent fluctuations in the price of Bitcoin (BTC) may have been orchestrated by traditional finance giants.
“Over the past month, I have maintained the view that a lot of this was really just manipulation, basically for Wall Street to put itself in its place,” he said.
Bitcoin dominance has declined by 5% since May
Bitcoin dominance, which measures Bitcoin’s overall market share, has declined by 5.13% over the past six months, and held 59.90% at press time. According to To TradingView.
It was only on November 4 that Bitcoin fell below the $100,000 price level for the first time in four months, leading to broader market concerns about the next direction for the asset’s price.
Bitcoin is trading at $102,090 at press time, According to To Coin Market Cap.
While Hyland predicts that the altcoin market may soon gain momentum, other indicators still point to a Bitcoin-centric market.
CoinMarketCap Altcoin Season index It is currently ranked 28 out of 100, within the “Bitcoin Season” zone.
The altcoin season may differ from previous cycles
The last time the indicator referred to “altcoin season” was on October 8, just days after Bitcoin reached a new all-time high of $125,100, when traders seemed to expect capital to rotate towards the top of the risk curve.
However, the index quickly dropped into risk-off mode following the market crash on October 10 that saw around $19 billion worth of leveraged positions wiped out of the cryptocurrency market.
Related to: Bitcoin price crash calls come from self-serving sellers: the analyst
Some cryptocurrency executives expect the upcoming altcoin season to be more selective and focused than previous market cycles.
Maan Fatuni, CEO of CoinQuant, a company that produces algorithmic trading tools, recently said that legacy cryptocurrencies with ETFs or expected to receive ETFs will absorb a lot of deployed capital during the upcoming altcoin season.
Fattouni said: “Not every currency will achieve huge returns. Liquidity will be concentrated in certain places, and dinosaurs will of course be one of them.”
magazine: Grokipedia: “Far-right talking points” or a much-needed antidote to Wikipedia?
The post Altcoin Season Hints Lie In Bitcoin Dominance Performance: Analyst first appeared on Investorempires.com.
