Altcoin Season On Cards! Bitcoin Dominance Could Soar 50% by Year-End
This week, the sector is expected to record three big events among the highs and lows of the market. Given the recent events in the business, it’s possible that the market may be more volatile in the upcoming months.
Most of the major cryptocurrencies are trading in red as below the $22,000 mark, Bitcoin started a steep decline and to prevent further losses, BTC must maintain a price above the $20,000 support. After touching the $1,800 liquidity zone, the price of Ethereum has dropped to the $1,600 barrier.
The recent price behavior of ETH could cause it to decline once more to $1,300 and below. Amid the bearish price actions, is Bitcoin’s dominance on the altcoins increasing?
According to a well-known crypto analyst, Bitcoin (BTC) is about to establish its dominance over the other crypto markets. Benjamin Cowen warns in a new video that the Bitcoin Dominance chart (BTC.D) could soon soar to higher than 50% by year’s end.
Alt Season on The Cards?
The BTC Dominance graph shows how much of the market capitalization for all cryptocurrencies is made up of Bitcoin. A bullish BTC Dominance indicates that Bitcoin is increasing more quickly than other crypto assets, or that altcoins are depreciating as the top cryptocurrency increases.
“If you look at the general direction of this, it seems like it’s arguably down… Maybe that’s building towards something that we’re seeing the beginnings of. Maybe it comes back up [to 58%] and it comes back down [to 40%].”
According to Cowen, a rise in Bitcoin Dominance in the upcoming months may actually assist pave the way for an alt season later on. During an altseason, cryptocurrencies have a strong surge as Bitcoin consolidates.
“Everyone talks about altseason and whatnot, but in order to get a true altseason like we’ve seen in bull markets past, a lot of times you need a lot of the juice that comes from already having [Bitcoin] dominance relatively high.”