Is Bitcoin Dominance Coming To An End? Analyst Says ‘Altcoin Season’ Is Upon Us
Bitcoin (BTC), the largest cryptocurrency by market capitalization, continues to impress as one of the best-performing digital assets in 2024. Despite facing challenges over the past two quarters, Bitcoin has surged by more than 137% in the last year, reinforcing its position as a leading cryptocurrency.
Bitcoin Dominance vs. Ethereum: Up by 6% in 2024
According to a recent report by IntoTheBlock, Bitcoin has significantly widened its lead over other digital assets in the market. The blockchain analytics platform highlighted a 6% increase in BTC’s dominance over Ethereum (ETH) and stablecoins in 2024 alone. This data underscores Bitcoin’s growing influence in the cryptocurrency landscape.
IntoTheBlock’s data reveals that Ethereum, the largest altcoin by market capitalization, is currently trading at its lowest level against BTC. This underperformance is partially attributed to the less successful launch of Ethereum’s spot exchange-traded fund (ETF) compared to Bitcoin’s.
The spot Bitcoin ETFs have attracted approximately $18 billion in capital over the past eight months, whereas Ethereum ETFs have seen mostly net outflows since their launch in late July. This trend indicates a stronger investor preference for Bitcoin, likely due to its relative stability and established market presence.
The introduction of spot exchange-traded funds has undeniably bolstered Bitcoin’s dominance over other assets in the crypto market. However, a well-known crypto analyst on X has recently made an intriguing prediction regarding Bitcoin’s dominance and the potential rise of altcoins in the current cycle.
Altcoin Season Might Be Here — Here’s How
Crypto analyst Ali Martinez took to X to discuss the potential end of Bitcoin’s dominance and the beginning of a new altcoin season. Martinez’s analysis is based on the formation of specific technical patterns observed on the BTC dominance and total market cap (excluding top 10 assets) charts.
Martinez suggests that Bitcoin’s dominance might be poised for a trend reversal, indicated by the formation of a rising wedge chart pattern on the weekly timeframe. Simultaneously, the altcoin market cap appears to be breaking out of a falling wedge pattern on the three-day chart.
For those unfamiliar, a wedge is a technical analysis pattern characterized by converging trend lines on a price chart. A rising wedge, often seen in an upward trend, is typically a bearish signal, suggesting an impending breakout reversal. Conversely, a falling wedge often signals a bullish reversal.
Martinez emphasized in his post that the “altcoin season is just around the corner,” especially with the Bitcoin dominance chart indicating a potential trend reversal and the altcoin market cap experiencing a bullish breakout. This shift could herald a new phase of growth and opportunities for altcoins.
As of this writing, the total market cap excluding the top 10 assets stands at approximately $213.814 billion, highlighting the significant potential for growth in the altcoin sector.
The evolving dynamics of Bitcoin dominance and the altcoin market are pivotal for investors and enthusiasts alike. By staying informed and understanding these market trends, stakeholders can better navigate the crypto landscape and capitalize on emerging opportunities.
For more detailed analysis and updates, keep following trusted sources and stay engaged with the latest developments in the cryptocurrency world.
