Bitcoin (BTC), the largest cryptocurrency by market cap, is one of the best performing digital assets so far in 2024. Despite its recent struggles in the last two quarters, the leading cryptocurrency is up more than 137% in the past year.
Bitcoin vs Ethereum Dominance to Rise by 6% in 2024
According to a recent report by IntoTheBlock, Bitcoin has created a wider gap between itself and other digital assets in the market. Blockchain analytics platform Reported BTC’s dominance over Ethereum (ETH) and stablecoins is set to increase by 6% so far in 2024.
Data from IntoTheBlock shows that Ethereum, the largest altcoin by market cap, is currently trading at its lowest level against BTC. This poor performance by ETH has been attributed to the relatively less successful launch of a spot exchange-traded fund (ETF).
Bitcoin ETFs have raised about $18 billion in capital over the past eight months, while Ethereum ETFs have recorded net outflows since their launch in late July. This trend can be linked to investors’ preference for Bitcoin due to its relative stability.
Ultimately, the introduction of ETFs helped cement Bitcoin’s dominance in the crypto market. However, a well-known crypto analyst on X made an interesting prediction about Bitcoin and altcoins’ dominance in the current cycle.
Altcoin Season May Be Here – Here’s How
Cryptocurrency analyst Ali Martinez went to X for Explains How Bitcoin’s current dominance could end and the altcoin season is just beginning. This analysis is based on the formation of technical patterns on Bitcoin dominance charts and total market cap (excluding top 10 assets).
According to Martinez, Bitcoin’s dominance may be on its way to reversing due to the formation of a rising wedge pattern on the weekly chart. Meanwhile, the altcoin market cap appears to be breaking a falling wedge pattern on the three-day chart.
Source: Ali_charts/X
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In this context, a wedge is a technical analysis pattern characterized by the convergence of trend lines on a price chart. A rising wedge, which often occurs in an uptrend, is a bearish signal, indicating that the price is about to undergo a breakout reversal. On the other hand, a falling wedge often indicates a bullish reversal.
Martinez asserted in his post that “altcoin season is upon us,” especially with the Bitcoin dominance chart indicating a potential trend reversal and the altcoin market value seeing an upward breakout.
At the time of writing, the total market cap outside of assets in the top ten is approximately $213.814 billion.
Total market cap (excluding top 10 assets) on the daily timeframe | Source: OTHERS chart on TradingView
Featured image created using Dall.E, chart from TradingView