Bitcoin Dominance Breaks Year-Long Trend
Bitcoin dominance has recently broken a trend that it had been following since late November of 2022. This development raises the question of whether altcoins are now set to surge ahead.
Throughout this year, and especially in the context of an impending Spot Bitcoin ETF approval, bitcoin has remained the dominant force in the crypto market. It led the entire market out of the last bear market and quickly gained momentum in the new year.
However, certain altcoins such as Solana ($SOL), Injective ($INJ), and Render (RNDR) have actually outperformed bitcoin, significantly increasing their gains compared to the leading cryptocurrency.
A Break in the Year-Long Trend
For altcoins to thrive, they have largely depended on an upward-trending bitcoin. When bitcoin has experienced corrections or sideways movements, altcoins have generally remained subdued.
Throughout 2023, bitcoin dominance has played a significant role in keeping altcoins in check. However, as the year draws to a close, the upward trend for bitcoin dominance (BTC.D) has finally been broken after more than a year.
Although BTC.D is currently sitting on support, there is a possibility of a minor bounceback before a continuation downwards.
Altcoins Breaking Resistance
Furthermore, the total market cap for all cryptocurrencies excluding bitcoin (BTC) and ethereum (ETH) is indicating the strength of altcoins. The combined market cap of altcoins is currently breaking through resistance levels, which bodes well for a potential surge in altcoins.
Altcoin Season on the Horizon
In addition, Blockchaincenter.net provides a graph that tracks altcoin seasons since 2017. According to this graph, we are not too far away from an altcoin season, which is defined as a period when 75% of altcoins perform better than bitcoin over the previous 90 days.
Will we witness an altcoin explosion? Is it too late to position yourself? Will bitcoin surpass $50,000? These are all questions that will be addressed in future articles from Crypto Daily. Trade wisely and safely.
Hot Take: Altcoins Poised for a Surge as Bitcoin Dominance Breaks Trend
The recent break in the year-long trend of bitcoin dominance provides an opportunity for altcoins to shine. While bitcoin has led the market throughout the year, certain altcoins have outperformed it. With the upward trend in bitcoin dominance finally broken, altcoins may have the chance to rally.
In addition, altcoins are showing strength in breaking through resistance levels, further indicating the potential for a surge. Furthermore, historical data suggests that we may be approaching an altcoin season, where altcoins outperform bitcoin for an extended period of time.
The future remains uncertain, but these recent developments provide hope for altcoin investors. As always, make informed trading decisions and stay safe in the volatile crypto market.
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