As a seasoned researcher who has witnessed the crypto market ebb and flow for the past decade, I find the recent trends quite intriguing. The dominance of Bitcoin over Ethereum and other altcoins is a testament to its resilience and investor appeal, especially with the success of spot Bitcoin ETFs. However, I can’t help but notice the prediction of an impending “altcoin season” by analyst Ali Martinez.
2024 has been a strong year for Bitcoin (BTC), the leading cryptocurrency by market value. Even though it faced challenges in the previous two quarters, Bitcoin has managed to surge ahead by over 137% compared to the same time last year.
Bitcoin Dominance Vs. Ethereum Up 6% In 2024
As per a recent report by IntoTheBlock, Bitcoin has been distancing itself from other digital currencies on the market. The blockchain analytics firm reported an approximately 6% rise in Bitcoin’s dominance over Ethereum (ETH) and stablecoins this year alone, as of 2024.
According to insights from IntoTheBlock, Ethereum, the leading alternative cryptocurrency by market value, is presently trading at a record low compared to Bitcoin. The underperformance of Ethereum can largely be attributed to the somewhat disappointing launch of Bitcoin-based exchange-traded funds (ETFs).
Over the past eight months, Bitcoin ETFs have accumulated approximately $18 billion in assets, whereas Ethereum ETFs have primarily experienced net withdrawals since their introduction in late July. This pattern suggests that investors tend to favor Bitcoin due to its perceived stability compared to Ethereum.
Essentially, the emergence of Bitcoin spot ETFs has boosted its influence within the cryptocurrency sector. Yet, a well-known cryptocurrency expert from platform X has proposed an intriguing forecast concerning Bitcoin’s dominance and the role of altcoins during this particular market cycle.
Altcoin Season Might Be Here — Here’s How
Crypto expert Ali Martinez recently shared his thoughts via X, suggesting that Bitcoin’s current dominance may soon decline, paving the way for an altcoin resurgence. This prediction is grounded in the emergence of technical patterns observed on Bitcoin’s dominance and total market cap charts (excluding the top 10 assets).
As an analyst, I’m observing that Bitcoin dominance could potentially shift direction, given the emergence of a rising wedge chart configuration on the weekly scale, as suggested by Martinez’s analysis. Simultaneously, the altcoin market capitalization appears to be breaking free from a falling wedge pattern on the three-day chart.
As an analyst, when I observe a chart with a wedge pattern, it’s important for me to note that this technical formation is characterized by two converging trend lines. In an uptrend, a rising wedge is something I should pay attention to as it might suggest a bearish signal. This means the price could be on the verge of a breakout reversal, potentially indicating a shift in market sentiment from bullish to bearish. Conversely, in a downtrend, a falling wedge often signals a potential bullish reversal, hinting that the price might be preparing for an upward move, signaling a possible change from bearish to bullish market sentiment.
In his recent update, Martinez pointed out that the “period for altcoins may be approaching soon,” as indicated by the Bitcoin dominance graph suggesting a possible shift in trends and the altcoin market value showing signs of an upward surge.
Currently, the combined value of cryptocurrencies not among the top 10 is approximately $213.814 billion.
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2024-09-22 18:11