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?
Bitcoin’s Dominance Falls After Halving
Crypto Rover points out that the two-week Bitcoin dominance chart has begun to show significant signs of decline following the recent Bitcoin halving. Historically, Bitcoin’s dominance tends to weaken after halvings, with money flowing into altcoins, creating opportunities for other digital currencies to rise.
According to Crypto Rover’s analysis, the same trend is expected to follow again in 2024. Meanwhile, recently Bitcoin’s dominance fell to 57.39% at the beginning of the fourth week of September, representing a drop of 1.09% from the previous week. This decline in dominance is a signal to many investors that an altcoin season could be on the horizon.
Is a Big Altcoin Rally Around the Corner?
However, Crypto analysts are paying close attention to the 200-day exponential moving average (EMA) as a key signal for the altcoin market. The 200-day EMA is a widely used tool to spot long-term trends, and right now, it suggests that altcoins might be gearing up for a strong rally.
Currently, the 200-day EMA for altcoins stands at $221.8 billion, while the 100-day EMA is at $212.9 billion. The last time this happened, was in July 2023, altcoins surged to new highs, establishing solid support.
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.
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