- Ah, the rising Bitcoin Dominance, a harbinger of doom for the altcoin markets.
- But wait! The Stablecoin Exchange Reserves whisper of a potential rebound.
In the past 24 hours, a staggering $2.18 billion worth of liquidations swept through the crypto market, the biggest liquidation event since the dawn of time (or at least since last Tuesday). Bitcoin [BTC] took a hit of $409 million, but the altcoin market? Oh, bless its heart, it suffered far worse.
The evidence lay bare, like a sunburned tourist on a beach, in both the price action and the swift rise in Bitcoin Dominance (BTC.D) that had folks clutching their pearls.
This rise was a clear sign of Bitcoin flexing its muscles while the altcoins were left gasping for air. The BTC.D had not yet breached the 60% resistance zone, and let’s be honest, that’s not exactly a warm hug for altcoins. Yet, the stablecoin metrics hinted at a glimmer of hope, like a mirage in the desert.
With so much blood on the streets, asking “when altseason?” felt a bit like asking when the next ice cream truck would roll by in a snowstorm. So, let’s pivot to the next best question — what can traders and investors expect in the coming months? Could an altseason be lurking around the corner, or is it just a mirage too?
Dry powder and ammunition to “buy the dip”
Before panic sets in like a bad sitcom, let’s remember that Bitcoin hasn’t yet lost the lows of the 2-month range at $92k. So, breathe, folks, breathe.
We took a gander at the Tether [USDT] metrics to see if buyers had any fight left in them. The USDT Exchange Reserves have been growing like weeds in a garden over the past two years.
More stablecoins in Exchange Reserves mean greater buying power, but let’s be real, it might take a while for the bulls to muster the courage to step in after the recent liquidation bloodbath.
The Exchange Reserves showed some promise, like a puppy wagging its tail. The USDT netflows were positive in recent weeks, especially in November, which is nice.
Transfers of stablecoins to exchanges were another sign of buying, but they’ve slowed down since December, like a car running out of gas on a deserted road.
The worrying Bitcoin Dominance trend
The rejections from the 60% resistance zone on the BTC.D chart are reminiscent of the bear years of 2018 and 2019, following the euphoric bull run of 2017. Ah, nostalgia!
The current retest occurs in a bull run year, assuming we’re not all just dreaming, and none of the conventional BTC bull peak indicators have flashed positive yet. Talk about a cliffhanger!
From a technical perspective, BTC.D is likely to climb higher to 63.84% and 72.5%. This could be fantastic news for Bitcoin and a real kick in the shins for the altcoin market.
It might come in the form of steady ETF and institutional demand for Bitcoin, while altcoins sit in the corner, sulking.
Read Bitcoin’s [BTC] Price Prediction 2025-26
Later in the cycle, as we inch closer to the peak, an altcoin season could emerge, characterized by a sharp drop in BTC.D and mind-blowing gains across the rest of the market as capital rotates from BTC to the alts. Or, you know, it might not happen at all. Because why would it?
There are simply too many altcoins for them all to rise like bread in the oven. This could mean that only the blue-chip coins and tokens with unique value will be the biggest winners. So, keep your eyes peeled
Read More
- Marvel Rivals Season 1 is bringing the Fantastic Four — here’s the Invisible Woman in action
- LDO PREDICTION. LDO cryptocurrency
- POL PREDICTION. POL cryptocurrency
- Looks Like DOOM 64 Is Getting a Native PS5 Port
- DUSK PREDICTION. DUSK cryptocurrency
- Will GOAT’s latest 31% hike finally push it above $1 on the charts?
- DGB PREDICTION. DGB cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- Mean Girls Star Has Perfect Idea for a Reunion After Christmas Movie Success
2025-02-04 04:11