Crypto analysts and various metrics hint that an altcoin season might be just around the corner. Amid the prolonged rise in Bitcoin's dominance, altcoins are in a downtrend. The article examines the reasons for current trends and forecasts for the near future.
Prolonged Bitcoin Dominance
In a recent tweet post, a prominent crypto analyst CryptoBusy highlights that Bitcoin has maintained a dominant position in the cryptocurrency market for over 600 days. BREAKDOWN SOON? Crypto analyst CryptoBusy notes: 'Bitcoin dominance has been on an uptrend for more than 600 days, while altcoins (TOTAL3) have been on a downtrend for 150+ days. One correction in BTC dominance could spark altseason!'. This trend reflects Bitcoin’s strong market position and investor confidence. Currently, Bitcoin's dominance stands at 57.32%, showing a strong leadership in the market. Meanwhile, altcoins tracked under the total market cap of all altcoins (TOTAL3) have been in a downtrend for over 150 days, with a market capitalization of approximately $566 billion.
Potential for Altcoin Season
CryptoBusy has highlighted that a correction in Bitcoin’s dominance could be a catalyst for major market shifts. If Bitcoin’s dominance drops, it might lead to a surge in altcoin activity and the beginning of an altcoin season. During such periods, altcoins often see significant price increases as investors shift their focus away from Bitcoin.
Altcoin Recovery Forecast
Renowned crypto trader Captain Faibik also notes a potential recovery for altcoins. He predicts that the market will remain sideways for the next few weeks. From Captain Faibik's tweet: 'What about altcoins? Most altcoins are down 60-70% since the March high, and altcoin holders are panicking. Markets will likely remain sideways for the next few weeks, and then there's hope that altcoins will bounce back after mid-September. In Q4...'. Faibik forecasts that after mid-September, we could see a bounce back in altcoin prices. He expects that in the fourth quarter of 2024, altcoins might not only recover but also surpass their highs from March 2024.
The prolonged dominance of Bitcoin and the current downtrend in altcoins could be signs of potential changes in the cryptocurrency market. The anticipated drop in Bitcoin's dominance and possible recovery of altcoins make the upcoming months particularly interesting for market observers and participants.
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