- Bitcoin dominance dips to 63.39%, opening the door for altcoins to rise in market share.
- Analyst predicts the start of “Altcoin Season” with growing interest in altcoins.
- Altcoins are expected to see increased trading volumes and volatility in the coming weeks.
The cryptocurrency market is undergoing a significant change as Bitcoin’s dominance continues its downward trend, creating room for a potential altcoin rally. Bitcoin’s market share, which previously held above 65%, dropped to 63.39%, indicating dynamic changes in the market. This drop in Bitcoin dominance created a space for the altcoins to pick up momentum, attracting investor interest.
According to analyst Crypto Rover, the onset of “Altcoin Season” implies a possible change in the pace of trading from Bitcoin and Ethereum to a broader assortment of altcoins like Solana, Cardano, and Avalanche that can get new opportunities. Earlier, while altcoins gained momentum, the volatility in the crypto market increased, particularly among mid- and small-cap cryptocurrencies, opening a window for swing traders and momentum investors.
Ethereum’s Demand Zone
As of press time, the ETH to BTC conversion rate is 0.02324 BTC within a demand zone, indicating a price band of potential strengthening of buying interest. It may cause a price reversal or upward momentum, and the level is closely watched by traders who may find a reversal or continuation in Ethereum’s price movement.
If Ethereum can maintain an impressive level of demand, there could be significant upside potential. Analysts believe Ethereum may pursue a similar resistance breach against Bitcoin as Bitcoin’s dominance weakens under pressure. If lessened, the relationship between Bitcoin and Ethereum may favour the latter as altcoins gain market dominance.
With Bitcoin’s dominance being rejected at key levels, altcoins are ready to experience a spike in trading volumes and high volatility. The analyst speculated that the market shift might come as an opportunity to investors in the upcoming weeks, especially to those who deal in altcoins.
Overall, with Bitcoin’s dominance on a downward trend, the rise in the altcoin market is likely to be enormous. The impressive trading performance of Ethereum compared to that of Bitcoin might further strengthen this rally as traders seek to diversify their portfolio outside Bitcoin. Traders must be on the lookout for opportunities as the crypto market shifts to a perspective, favouring altcoin investors.
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