Bitcoin dominance has broken an upward trend that it has respected since late November of 2022. Could this herald the start of a surge for altcoins?
Since the start of the year, and also in the current environment of an impending Spot Bitcoin ETF approval, bitcoin has ruled the roost. It led the whole crypto market out of the doldrums of the last bear market, coming out of the gates fast as soon as the new year dawned.
Of course, some of the top altcoins have outperformed bitcoin, with the likes of Solana ($SOL), Injective ($INJ), and Render (RNDR) putting on a lot more gains than the king of the cryptocurrencies.
Year-long trend is broken
Source: Trading View
However, for the altcoins to run, they have relied on a strongly upward trending $BTC. If $BTC has been correcting or ranging sideways, the altcoins have generally been subdued as well.
Bitcoin dominance has very much been keeping the altcoins in their place over the whole of 2023, and just as the year is about to end, the upward trend for BTC.D has finally been broken, after more than a year in the making.
Source: Trading View
Be that as it may, BTC.D is sitting on support, and there may be the chance that it is able to make a small bounce back to the upside. That said, it might just be to confirm the break before continuing down.
Altcoins breaking resistance
Source: Trading View
Total 3 market cap (all cryptocurrencies except $BTC and $ETH) is also showing the strength of the altcoins. The combined total of all the altcoins is breaking through resistance right now, and this bodes well for an altcoin surge.
Altcoin season
Source: Blockchaincenter.net
Finally, at Blockchaincenter.net, there is a graph that goes back to 2017 and records all the altcoin seasons since then. According to the graph we are not too far from altcoin season, which is defined by 75% of altcoins performing better than $BTC over a period of the previous 90 days.
Are we in for an altcoin explosion? Is it too late to position oneself? Will $BTC even surpass $50,000? All of these questions aim to be answered in future articles from Crypto Daily. Trade well and safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
