- BTC.D has declined by 2.24%, as an investor predicted a new altcoin season.
75% of altcoins have outperformed Bitcoin over the past 90 days.
As a seasoned researcher with over a decade of experience in the crypto market, I have witnessed numerous bull and bear cycles, each offering valuable insights into the ever-evolving dynamics of this nascent industry. The recent decline in Bitcoin’s dominance (BTC.D) and the surge in altcoins performance is reminiscent of the early days of 2017, when the altcoin season was in full swing.
For about a month now, Bitcoin’s dominance (BTC.D) has consistently failed to break through the resistance of approximately $58.
The persistent inability to surpass this persistent barrier is fueling heightened excitement among those who own altcoins.
At the moment, Bitcoin’s dominance stood at 56.71%, marking a minor 0.03% drop in the last 24 hours. Compared to a week ago when it was at 58%, this is a noticeable decrease.
Consequently, this specific market value amounted to a staggering $1.24 trillion, with the overall cryptocurrency market reaching an impressive $2.18 trillion.
Consequently, this decrease means that Bitcoin now represents only about 1.55% of all global assets, significantly lower than its previous share of approximately 2.75% within the entire cryptocurrency market.
Historically speaking, a decrease in the BTC.D ratio can be seen as positive news for alternative cryptocurrencies because they often gain momentum. Consequently, this ongoing trend has sparked discussion among analysts about the potential paths for both Bitcoin and alternative coins in the near future.
Based on Johncy Crypto’s proposal, there could be an upcoming altcoin rally, which he believes is indicated by the creation of a rising wedge chart formation.
What BTC.D’s decline means for altcoins
According to Johncy’s interpretation, the influence of Bitcoin appears to be shaping into an ascending wedge pattern on weekly graphs, which typically indicates a negative trend.
Therefore, a breakdown from this channel will confirm a bearish outlook for the crypto.
If Bitcoin continues to trade horizontally (sideways) for another week, or shows a bullish trend but its dominance decreases, this could be an indication that altcoins are about to take the lead.
In simpler terms, if the influence of Bitcoin in the market keeps decreasing, other cryptocurrencies (altcoins) are likely to increase their share, potentially causing altcoins to exceed Bitcoin’s performance.
Instead, a good method for assessing an altcoin’s performance relative to Bitcoin involves examining the Ether (ETH) to Bitcoin (BTC) ratio.
Over the last 24 hours, the value of ETH relative to BTC dropped by about 2.40%. But when looking at the bigger picture, ETH has outshone BTC, increasing by approximately 6.28% against it in the last 30 days.
This trend indicates that alternative cryptocurrencies (altcoins) have been performing better compared to Bitcoin on a monthly basis, since the dominance of Bitcoin has decreased from approximately 58.71% to 56.71%.
Similarly, the value of memecoins has significantly increased, jumping from a market capitalization of $43.7 billion to $50.9 billion as shown on weekly graphs.
Furthermore, it’s worth mentioning that several alternative cryptocurrencies have surpassed Bitcoin in the last three months. Particularly, Sui [SUI] tops the list with a 183.5% increase, followed closely by Bittensor [TAO] at 136.1%, Aave [AAVE] with a 61% rise, and dogwifhat [WIF] showing a 56.4% growth.
Therefore, 75% of the Top 50 coins performed better than Bitcoin over the last 90 days.
To conclude, as we speak, the Altcoin Season Index stands at 37, marking an increase from 33 in the last week but a drop from its peak of 47 seen two weeks back. Meanwhile, the Bitcoin Season Index is currently at 25.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Such a scenario indicates increased demand for altcoins among investors compared to Bitcoin.
Essentially, the period favoring alternative cryptocurrencies (altcoins) seems to be picking up steam, with the likelihood of further price increases becoming more promising.
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2024-10-08 21:12