Altcoins Poised For December Gains As Bitcoin Loses Ground
While Bitcoin remains the world’s top digital asset, with its price fluctuating between $90,000 and $96,000 this week, some experts are looking ahead and beyond Bitcoin.
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According to some crypto commentators on Twitter/X, Bitcoin’s market dominance is declining, which means altcoin season is about to begin. In an article by MikyBull Crypto, Bitcoin’s market dominance fell below a two-year support line, creating a wealth of opportunities for holders and traders.
According to TradingView data, Bitcoin current dominance It was 56.67%, compared with 57% last week, breaking through the two-year support level. Analysts say Bitcoin’s continued decline in dominance will impact the entire cryptocurrency market this December and beyond.
On-chain and market data indicate that altcoins are ready for market action, with MikyBull Crypto stating that its season begins on November 30.
Wow, Bitcoin dominance just broke a two-year-old support level.
We do officially enter #alternativeseason Guys! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn
— Mikybull 🐂Crypto (@MikybullCrypto) November 30, 2024
A look at Bitcoin market dominance
In the cryptocurrency space, analysts and market participants use a variety of indicators to evaluate Bitcoin’s performance. Bitcoin dominance is a reliable indicator used to determine the asset’s relative market share in the cryptocurrency space. The higher the ratio of Bitcoin, the better it is for holders and investors.
However, Bitcoin’s dominance has been declining in recent weeks. As of December 2, the ratio was 55.3%, compared with 58.9% the previous month. According to MikyBull Crypto, Bitcoin has fallen below its two-year support level.
The decline in Bitcoin dominance provides insights into the strategies of traders and investors. One takeaway is that investors are reallocating cash to other digital assets. Many analysts say that some of these investors are reallocating funds to altcoins, such as Rippleis now soaring.
Analysts said investors may diversify their funds and look for other high-growth token alternatives.
Analysts and cryptocurrency commentators offer varying insights
Currently, some altcoins are leading the market surge. ether is experiencing a price surge and increased demand for leveraged ETH exchange-traded funds. On-chain data shows that demand for the product increased by 160% immediately after the US election on November 5. Analysts remain bullish on ETH, with many expecting the asset to reach $4,000 soon. Then there is XRP, which is trading above $2.
Swyftx’s Pav Hundal gave a conservative view, saying that Bitcoin’s dominance score may still reach 65%, 67%, or even 70% before falling. He believes that complicating factors prevent us from picking the right day for altcoins to surge or for Bitcoin to fall.
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Not all analysts think altcoins will surge any time soon
Meanwhile, not all cryptocurrency commentators believe the altcoin surge is coming within days. CryptoQuant’s Ki Young Ju advises caution in this situation. The CryptoQuant CEO remains bullish on Bitcoin, adding that it still has institutional support and they are unlikely to refocus on the speculative asset.
The CEO added that in order for altcoins to reach their all-time high market caps, these assets will require significant inflows into cryptocurrency exchanges. He said altcoins must develop strategies to earn capital rather than rely on Bitcoin’s lack of momentum.
Featured images from Finimize, charts from TradingView
