While Bitcoin dominance is struggling to break its resistance level, altcoins are seeing a rise. Well-known crypto analyst Crypto Rover suggests that Bitcoin might be headed for a major drop, which aligns with previous market behavior after Bitcoin halvings. With the fall of BTC dominance altcoin season tends to begin as investor shift their investment into altcoin.
Could this signal the start of the next big altcoin season? Get your answers below.
Crypto Rover highlights that Bitcoin’s dominance chart over the past two weeks is showing clear signs of weakening, especially following the recent halving event. Historically, Bitcoin’s dominance tends to dip after halvings, creating an environment where altcoins can thrive.
Investors often take advantage of this by reallocating funds into altcoins, driving their prices higher.
In 2024, the same trend is expected to play out. Bitcoin’s dominance recently dropped to 57.39% at the start of the fourth week of September, down 1.09% from the prior week. This decline has sparked speculation that an altcoin season could be imminent, as traders prepare for a potential shift in market dynamics.
Crypto analysts are now closely monitoring the 200-day exponential moving average (EMA), a crucial indicator for long-term trends in the market. Right now, the 200-day EMA suggests that altcoins might be preparing for a strong rally.
Currently, the 200-day EMA for altcoins stands at $221.8 billion, compared to the 100-day EMA of $212.9 billion. The last time these levels were seen was in July 2023, when altcoins surged to new highs, establishing a solid support base.
Do You Know the 75% Rule?
A major sign of an altcoin rally is when 75% of the top 50 cryptocurrencies outperform Bitcoin over 90 days. When this happens, Bitcoin holders often move some of their BTC into altcoins, aiming to catch big gains.
Crypto Rover’s analysis hints that investors should prepare for potential opportunities in the altcoin market, as Bitcoin’s struggles might signal an upcoming altcoin boom.
The time is now to diversify your portfolio. Altcoins are on the rise.
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