Bitcoin is struggling to reclaim the $100,000 mark, facing persistent resistance while finding strong support around $94,000. Yesterday brought an interesting development to the cryptocurrency market. While Bitcoin faced selling pressure and volatility, altcoins stole the spotlight, with many posting impressive gains of over 10%. This shift indicates a potential change in market dynamics.
Senior analyst Jelle recently shared insightful data about X, highlighting an important development in Bitcoin’s dominance chart. According to Gilley, Bitcoin’s dominance has collapsed, and the collapse has been confirmed, indicating a potential shift in capital flow towards altcoins. This trend suggests that Altseason – a period marked by massive gains across Altcoins – could be on the horizon.
Altseasons have historically followed periods of BTC consolidation as investors look for higher returns in alternative cryptocurrencies. With Bitcoin’s dominance weakening and altcoins showing strength, the coming weeks could provide exciting opportunities for traders and investors seeking to diversify their portfolios. As Bitcoin continues its battle to surpass six figures, the focus may temporarily shift towards altcoins that are poised for explosive growth.
Bitcoin euphoria is spreading into altcoins
The recent euphoria that Bitcoin has seen over the past few months has begun to shift towards altcoins, a natural flow in the cryptocurrency market as liquidity typically moves from Bitcoin to altcoins. This shift is becoming more evident as recent price fluctuations indicate that altcoins are poised to rally. Following Bitcoin’s dominance and bullish sentiment in the market, altcoins are now showing signs of strength, with many posting impressive gains.
Geely’s chief analyst recently Share detailed technical analysis on XHe revealed and confirmed the collapse of Bitcoin dominance, which may represent the beginning of a new phase in the market. According to Jelly, the next Altseason, which historically follows periods of BTC consolidation, could be just around the corner, with a strong possibility of starting in 2025.
Once Bitcoin dominance drops below the critical level of 55%, a massive replacement season will likely follow. This could lead to massive movements in altcoin prices, providing traders and investors with a new opportunity for growth.
As BTC struggles to maintain dominance and faces resistance at key levels, altcoins may become the next big winner. The combination of market sentiment, shifting liquidity and major technical failures suggests that the coming months could be filled with strong performance for altcoins.
BTC Holding Key Demand Levels
Bitcoin is currently trading at $94,000 after testing the $92,000 level again and holding it as strong support. This key demand area has proven resilient, indicating that buyers are still active around this level.
If BTC manages to hold above the $95,000 mark in the coming days, a recovery of the $100,000 threshold will likely follow, confirming the continuation of the uptrend. However, there is a high risk of a drop below $92K, which could trigger a sell-off and could lead to a deeper correction.
If BTC remains above $92K, it will indicate strength and support the bullish outlook, providing confidence to investors. On the other hand, if the price fails to maintain this support level and falls below $92,000, it indicates weakness and could lead to further selling pressure, which could push the price lower.
In the immediate short term, staying above $92K is crucial to maintaining momentum. Failure to do so may change market sentiment and lead to a shift towards bearish price action. Therefore, the next few days will be pivotal in determining Bitcoin’s near-term direction.
Featured image by Dall-E, chart from TradingView