- Since Bitcoin dropped below $60,000, its dominance has decreased from the annual peak it set a few days ago.
- On the other hand, despite previously reaching lower lows, the market capitalization of the top 125 altcoins has grown.
- With technical analysis to back them up, many predict that this week could be bullish for cryptocurrencies.
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On August 9, Bitcoin’s (BTC) dominance, a measure of the coin’s value in relation to other cryptocurrencies, hit a yearly high of 57.70%. This occurred as the price of Bitcoin rose following its previous decline below $50,000.
But as of the time of writing, BTC.D, as it is often known, has declined, fueling rumors that altcoin season may be coming to an end.
Notwithstanding Its Recent Milestone, Bitcoin’s Dominance Weakens
When 75% of the top 50 non-BTC cryptocurrencies outperform the overall cryptocurrency market, it’s known as “altcoin season.” This can only occur if the dominance of Bitcoin declines and the TOTAL2 market cap continuously rises.
The total market value of the top 125 cryptocurrencies is equal to TOTAL2. As of the time of publication, the TOTAL2 had grown to $890.18 billion, but the dominance of Bitcoin has dropped to 56.95%.
A few months ago, the prices of various altcoins, including Ethereum (ETH), increased by double digits. But the rally did not last long. Furthermore, the introduction of spot Ethereum ETFs has not produced the expected outcomes, especially considering that as of this writing, the TOTAL market size is still less than $1 trillion.
More significantly, the price of Bitcoin has fallen below $60,000 and is at $58,188. This drop has sparked new conversations, particularly on X, where many people are thinking that altcoin season may be coming.
For example, cryptocurrency trader Zen stated that if BTC stays in the $53,500–$60,800 range, then this week may be favorable for altcoins.
Moreover, recent developments imply that Zen’s viewpoint might be accurate. Institutions whose purchasing power has been essential to the price of Bitcoin, according to Lookonchain, have not purchased the coin.
This is taking place even though just a few days earlier institutions had access to a substantial amount of stablecoins. Should these establishments cease their accumulation, Bitcoin’s hegemony may further wane.
Is the Alt Season Positioned to Lead?
In the meantime, the TOTAL2 daily chart indicates that it is emerging from the trendlines that are descending. From May to early August, the value experienced a sequence of Lower Lows (LL), as can be seen below.
When a cryptocurrency’s price drops to a new low that is lower than its previous one, it is said to be in a lower low, indicating that the downtrend is still ongoing. But as of the time of writing, the altcoin market has reached a Lower High (LH), suggesting that if this momentum continues, a sizable rally may emerge.
Altcoin season might not materialize, though, if Bitcoin bulls enter the scene with yet another wave of accumulation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
