- Analysts believe that an altcoin sector rebound could be likely.
- BTC dominance and ETH/BTC ratio suggested a likely relief for the sector.
As an analyst with over a decade of experience in the cryptocurrency market, I have seen numerous cycles and trends come and go. The current state of the altcoin sector seems to be pointing towards a potential rebound. Based on historical Bitcoin dominance trends and the ETH/BTC ratio, it appears that we might be on the brink of another altcoin season.
However, as always in the world of cryptocurrencies, nothing is certain until it happens. The market can always surprise us with a sudden twist or turn. But if I were to place a bet, I’d say the odds are looking good for the altcoins this time around.
Now, let me share a little joke to lighten things up. You know what they say, in crypto, there are only two seasons: altcoin season and not altcoin season! So, we’ll just have to wait and see which one it is this time. Fingers crossed for the former!
Momentum for the altcoin season appeared to decelerate in December, following a highly volatile surge in November that significantly boosted the prices of Dogecoin [DOGE], Ripple [XRP], and Hedera Hashgraph [HBAR].
It’s possible that the next stage for altcoins could be approaching, given the patterns of past Bitcoin (BTC) dominance fluctuations.
Is the altcoin season closer?
As per the analysis by cryptocurrency expert TechDev, it’s possible that Bitcoin’s dominance (BTC.D) might decrease in January, potentially initiating the long-anticipated rally of alternative cryptocurrencies, often referred to as an “altcoin season.
“History tells us the candle that starts tomorrow is for altcoins.”
As a seasoned crypto trader with years of experience under my belt, I have come to learn that trends in the cryptocurrency market can be unpredictable but following key indicators like BTC Dominance (BTC.D) can provide valuable insights. Recently, I noticed that the chart for BTC Dominance over a 6-month timeframe reached long-term trendline resistance. This is not an unusual occurrence in the world of crypto trading, but the significance lies in what happens next.
A rejection at this level could potentially lead to a decrease in BTC dominance, opening up opportunities for altcoins to recover strongly. I’ve seen it happen before, and when altcoins start performing well, they can often outpace Bitcoin in terms of returns. So, while the short-term future may be uncertain for BTC, the potential for altcoins is definitely worth keeping an eye on.
Furthermore, the relationship between ETH and BTC suggested a potential positive trend for the altcoin market. This ratio measures how ETH fares compared to Bitcoin, and since ETH is the primary altcoin, it serves as an indicator of the overall strength within the altcoin market.
According to SwissBlock’s analysis, it appears that the Ethereum-to-Bitcoin ratio has reached its lowest point, potentially signaling an upcoming surge in the popularity of alternative cryptocurrencies (altcoins), as Bitcoin Dominance (BTC.D) has been experiencing difficulties.
In its Telegram broadcast, the firm said,
The influence of Bitcoin seems to be waning, and the ratio of Ethereum to Bitcoin (ETH/BTC) has reached a new low, which could indicate a market floor. Could this mean that other cryptocurrencies will experience growth in the near future?
In contrast to the broader market’s downturn last week, certain alternative cryptocurrencies, such as Virtual Protocol (VIRTUAL), saw impressive gains. VIRTUAL surged nearly 30% to hit a new high of $4 for the first time. Likewise, Gate Token (GT) and FTX Token (FTT) each experienced a significant boost, rising approximately 18%.
Nevertheless, while the broader altcoin market stayed steady, hints from the Altcoin Season Index showed it hovering near the balanced point. This implies that the alt-season’s momentum might pick up again or potentially decrease even more.
It’s worth noting that an increasing number of investors favor Ethereum (ETH) over Bitcoin (BTC). This shift could potentially be beneficial for ETH, the leading alternative coin, as well as the entire cryptocurrency market.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- POL PREDICTION. POL cryptocurrency
- STEEM PREDICTION. STEEM cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- COW PREDICTION. COW cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
2025-01-01 14:15