- Historical patterns using Bitcoin -Dominance in the previous cycle now suggest that the Altcoin rally phase has passed.
- Additional analysis shows that only 32% of the altcoins are in profit; However, some buying options can be for us.
The wider Crypto market recently left behind. Since reaching a market capitalization of $ 3.73 trillion on December 16, it has fallen $ 500 billion to $ 3.23 trillion.
Altcoins have taken the biggest hit, while Bitcoin[BTC] remained relatively stable.
The market activity has not been delayed in the last 24 hours. The trade volume fell by 32.39% to $ 120.09 billion and Bitcoin Dominance reached 60.30%.
Ambcrypto discovered that market conditions do not put a bullish support for altcoins.
Dominance of the market breaks historical trends
According to Kapital, the current market movement of the Bitcoin Dominance Chart does not follow historical trends.
Bitcoin -Dominance measures the percentage of the total market capitalization of cryptocurrency that Bitcoin is compared to other cryptocurrencies.
When Bitcoin Dominance rises, this Altcoin movements suggests or slowly, and vice versa.
According to the graph of the analyst, in the last two occasions – in September 2022 and August 2023 – when BTC – Dominance in a certain support zone on the RSI graph fell, Altcoins Trending was higher, with various cryptocurrencies that established new highlights.
Source: TradingView
However, the activities in the market have since shifted, specifically with BTC -Dominance that wins just over 6%.
This suggested that the investment in the market has been channeled back to Bitcoin, indicating the end of the rally for Altcoins.
Is there a buying option that is for Altcoins for the bow?
At the time of writing, the percentage of the profit percentage of Glassnode – used to measure the profitability of Altcoins with the help of a basket of 29 altcoins – states that only 32% of these altcoins are in profit. This means that nine of these assets are profitable.
However, there is a possibility for the other altcoins to become bullish if the lower trend line is indicated on the graph. This can extend to the total market.
Source: Glassnode
If the soil trend line is respected and the price is traded higher, there is a good chance that there is still hope for an altical season – as historically seen, every time the trendline is tested, a market trally comes up.
Another bullish indicator
Ambcrypto found another bullish correlation that supports the story of the profit capacity: the ETH/BTC graph recently responded to a support level, which means that it could be higher.
Source: TradingView
Usually, when ETH/BTC meetings, it is an indicator of liquidity that flows in Altcoins, with ETH that absorbs the most market liquidity and its price reinforcement.
However, if Eth/BTC trends are lower, this suggests that Bitcoin pulls more liquidity, causing altcoins to stagnate or pushes them lower.
