Why The Crypto Market Tides Are Turning In Favor Of Altcoins
December 01 2023 - 2:00PM
NEWSBTC
For the last two years in the crypto market, it has paid off to be
in Bitcoin versus altcoins. However, a new BTC dominance chart
shows why the tides are about to turn in favor of altcoins. Bitcoin
Crypto Market Dominance Remains Above 50% At this very moment,
Bitcoin, the top cryptocurrency by market cap, represents more than
50% of the entire crypto market. On one hand, this makes sense
given its regulatory acceptance, first-mover advantage, and
significant brand power. On the other hand, there are tens of
thousands of altcoins out there and yet BTC is still dominant.
Related Reading: A Golden Opportunity For Ethereum? 600% Buy Signal
Returns But even Bitcoin dominance goes through cyclical boom and
bust phases where it loses its dominance to the rest of the crypto
market. This is typically called “altcoin season.” The last one to
occur was back in late 2020 into 2021, and it lasted only several
months. Before that, the rally that coined the term altcoin season
took place all of 2017. With three to four years in between the
2017 rally, the calendar turning toward 2024 puts us yet another
year closer to the next altcoin season. This is evident by price
action and technical oscillators following sine waves. Sine waves
could point to the next alt season | BTC.D on TradingView.com
Riding The Wave To The Next Altcoin Season According to
Investopedia, a sine wave is an S-shaped geometric waveform that
oscillates periodically above and below zero. Sine waves can be
used in technical analysis to help identify cyclical patterns in
technical indicators and oscillators. In the chart above, the sine
wave suggests that indicators are ready to begin rolling over, with
the wave overlaid matching the 1M Stochastic almost perfectly.
Aside from some chop, the sine waves have followed the ebb and flow
back and forth between Bitcoin and altcoin dominance for going on a
decade. Related Reading: Howling At The Moon: 23,000% Dogecoin
Signal Reawakens If the tool accurately demonstrates the path ahead
for Bitcoin dominance, the next altcoin season could be on the way
soon enough. Bitcoin is approaching $40,000 and is becoming
increasingly expensive for retail investors, who aren’t even paying
attention yet to the crypto market. When they do realize how
expensive Bitcoin is again, right under their noses, retail
investors will search for the “next Bitcoin” frantically, sparking
the next altcoin season. The last time these phases occurred,
Bitcoin was passing $10,000 in 2017, and $20,000 in 2020. Now in
2023, will $40,000 be the trigger for alts to finally outperform?
It's time for the ebb and flow to favor altcoins again
pic.twitter.com/y5cONFhJyo — Tony "The Bull" (@tonythebullBTC)
December 1, 2023 Tony is the author of the CoinChartist (VIP)
newsletter. Sign up for free. Follow @TonyTheBullBTC &
@coinchartist_io on Twitter. Or join the TonyTradesBTC
Telegram for daily market insights and technical analysis
education. Please note: Content is educational and should not be
considered investment advice. Featured image from Shutterstock,
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