- The charts showed that it was still a Bitcoin season.
- Economic factors will have a big effect on the market sentiment and the chances of an altcoin season.
As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I can confidently say that we are still firmly entrenched in the Bitcoin [BTC] season. The charts paint a clear picture, and while an altcoin season may be on the horizon, it seems premature to declare its arrival just yet.
According to an analysis posted on X (previously known as Twitter), the Bitcoin Dominance graph appears poised to drop significantly.
The higher timeframe MACD bearish crossover could elate crypto traders and altcoin investors.
The Bitcoin Dominance measures the market cap of BTC as a percentage of the total crypto market cap. When it drops, it means BTC is losing market share, which is a key development for an altcoin season.
How close are we to one, and what are the signals the altcoin season is upon us?
It is still BTC season, evidence shows
Over the past few months starting from early 2023, the weekly graph depicting Bitcoin’s dominance has shown a steady upward trajectory. However, this climb paused during the period spanning April to July in the current year. Since then, it has once again begun to ascend.
The upward breakout reinforced the firm grip BTC has on the capital inflow to the crypto markets.
In simpler terms, if Bitcoin’s dominance (BTC.D) encounters a roadblock around 60% or especially 70%, it might lead to a decrease in its value. Such a drop could potentially initiate a period of increased activity for other cryptocurrencies, often referred to as an “altcoin season.”
According to the Altcoin Season Index, it currently stands at 22, suggesting that traders and investors should be patient as the celebrations for significant altcoin gains are yet to fully start.
The macro market outlook encouraged altcoin season expectations
The exchange stablecoins ratio measures the coin reserve divided by the stablecoin reserve of the exchange. A drop in this metric denotes an increased stablecoin reserve, which in turn highlights increased buying power.
Over the last six weeks, the metric has been decreasing and dipped beneath its lowest point from March 2024. This decrease has given investors a solid basis for believing that cryptocurrency prices might start increasing once more due to renewed interest.
Arthur Hayes, co-founder and ex-CEO of cryptocurrency exchange BitMEX, posed a question from his macroeconomic perspective: When could we expect the time for the altcoin market to flourish again?
Investigated the relationship between the Reverse Repo Program and the influx of liquidity into financial assets like gold and Bitcoin.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As an analyst, I posit that for an altcoin season to unfold, I believe it’s crucial to have ample dollar liquidity, Bitcoin surpassing the $70k mark, and Ethereum breaking through the $4k barrier.
Time alone can reveal if his prediction holds true, as history shows us that significant Bitcoin surges have been instrumental in injecting fresh capital into the cryptocurrency market, which subsequently flowed across various alternative coin (altcoin) sectors.
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2024-08-16 10:21