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Bitcoin, the world’s largest cryptocurrency, is losing its grip on market supremacy, thus changing the cryptocurrency landscape. Analysts believe the cryptocurrency could soon take the spotlight as its market share drops to 55.80% and flashes a confirmed sell signal for the first time since 2020. Bitcoin price Struggling to maintain its momentum and falling below important trend line support, this sentiment is gaining momentum.
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Bearish signals raise Altison’s guess
The Relative Strength Index (RSI) indicating Bitcoin dominance is trading below the midline, thus reinforcing the negative outlook. Such situations have historically paved the way for what is known as the “alternate season” – a time when others were Cryptocurrencies Shine on Bitcoin. Experts assert that capital from Bitcoin could move to altcoins, generating instability and new investment prospects.
A sell signal has just flashed on Bitcoin dominance for the first time since 2020
Let the real fun #season It starts pic.twitter.com/R9QeCO69YH
— Mikybull Crypto (@MikybullCrypto) December 3, 2024
This trend is consistent with declining holdings among long-term Bitcoin investors, and is therefore not just theoretical. Recent data from IntoTheBlock shows that wallets that have held Bitcoin for more than 155 days currently hold only about 12.45 million BTC, the lowest number since mid-2022. These balances, which are down approximately 10%, indicate that some individuals are cashing out their gains or converting Their money into cold wallets.
Bitcoin: Decrease in long-term holdings
As Alpha Coin’s expected target of $100,000 approached, Bitcoin price faced strong resistance. Multiple failures at $97,500 led to significant declines. Bitcoin fell further on Tuesday, selling for around $93,940. This volatility is offset by a clear decline in long-term assets, making it difficult to know which direction the market is headed.
Long-term Bitcoin holders have been gradually reducing their balances, now holding 12.45 million BTC – the lowest level since July 2022.
So far, this decline is considered less severe than in previous cycles. Long-term bondholder balances fell by 9.8% this cycle, compared to 15% in 2021 and 26% in 2021. pic.twitter.com/eA5Cckrgs4
— IntoTheBlock (@intotheblock) December 3, 2024
Although the current decline in holdings is less significant than what happened in 2021 or 2017, it does draw attention to the changing market attitude. Some observers say this behavior shows purposeful repositioning by experienced investors trying to adapt to changing market conditions.
A rare bullish signal provides hope amid the bearish mood
Even with negative undertones, the rare bullish signal gives some hope. Recently in line with the moving averages, the SOPR suggests that Bitcoin could rise over the next month or two. Such signs are rare, only once or twice during a bull market cycle.
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Although downward pressure is still evident, experts point out that these positive signals offer risk-tolerant investors some good prospects. In line with previous patterns following the halving events, market watchers are also bracing for a potential decline heading into January 2025.
Currently, Bitcoin’s declining dominance and increasing volatility highlight the need for a careful and strategic approach. Whether it’s Altseason or a new Bitcoin rally, the coming months could change the cryptocurrency landscape.
Featured image from DALL-E, chart from TradingView
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