The creators of crypto analytics firm Glassnode warn that altcoins could lose all bullish momentum after last week’s market correction.
Jan Happel and Yann Allemann, who run the Negentropic on social media platform over the last seven days.
According to Glassnode co-founders, traders and investors will likely take a risk-off approach to altcoins unless Bitcoin recovers a key psychological price point.
“Is this the end of the Altcoin season?
Bitcoin’s dominance is increasing after falling below $100,000, while altcoins are losing critical support. The dominance has risen and resumed its uptrend, indicating a stronger BTC environment.
If BTC stabilizes above $100.00, we may see a pump in altcoins now in accumulation zones. Until then, Bitcoin appears poised to take the lead, leaving altcoins behind.”
The Bitcoin Dominance (BTC.D) chart tracks how much of the total crypto market capitalization belongs to BTC. In the current state of the market, a rising BTC.D suggests that altcoins are losing value faster than Bitcoin.
At the time of writing, BTC.D is hovering at 59%.
Looking at Bitcoin itself, Glassnode executives say long-term Bitcoin holders will lose their holdings en masse as other investor cohorts pick up the slack.
“The board keeps changing.
As BTC continues to flow out of exchanges during this dip, long-term holders are exiting vigorously, while short-term holders are jumping in without hesitation.
Whales are quietly piling up, miners remain neutral and the selling pressure has only reshuffled the board.
New hands absorb the turnover.”
At the time of writing, Bitcoin is worth $97,246.
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