After the fluctuations in Bitcoin (BTC) and the subsequent stagnation, the crypto market’s attention has now turned to altcoins. This process, which traders often refer to as “altseason”, could initiate a period where altcoins perform better than Bitcoin due to its stagnation.
Current Situation in Bitcoin Domination
Until the beginning of this week, there had been an increase in Bitcoin’s dominance over other cryptocurrencies. In the following process, Bitcoin Dominance (BTC.D) peaked with a value of 55.35% but later it was seen that it had a value of 53.42% as of writing time.
Previously, it has been seen several times that the altcoin period starts after BTC.D reaches its peak points and then retreats. The reason for this is shown as the money shifting to Bitcoin in bull markets first. Accordingly, traders can invest part of their profits in altcoins and then increase the values of the highly volatile market.
The market value index that altcoins possess reveals this capital inflow and outflow. They are usually used as an important indicator to detect the beginning of the altseason period.
Will Altcoins Rise?
Well-known cryptocurrency and stock analyst Jelle shared a post confirming that the altcoin market value has moved out of the accumulation range. The analysis made by Jelle was shared on X (formerly known as Twitter) on December 8, and attention was drawn to the range until 2022.
The graph used in the post draws attention to the fact that altcoins have a total value of 723 billion dollars. According to the analyst’s view, altcoins are currently being traded in a “retest” zone.
If what happened in the last cycle repeats, this current retest phase could initiate the upcoming altseason period. Despite this, notably, Jelle expects the total market value of altcoins to exceed 1.8 trillion dollars and reach new peaks.
In addition, a failure that may occur during the retest phase and the possible return of the index to the accumulation phase could also be possible. It is necessary to consider that such a pullback could invalidate Jelle’s analysis and consequently delay the expected altseason.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry risk due to their high volatility and should conduct their transactions based on their research.
