Altcoins
Bitcoin’s Dominance Shows Altcoin Season Is Still Away: Here’s Why
- Bitcoin has been in crisis since April.
- Tether and BTC dominance charts point to a bullish future for the world’s leading cryptocurrency.
Bitcoin [BTC] was trading at $62.5k at press time, with the New York session just a few hours away. While cryptocurrencies trade 24/7, the Monday New York session often signals a trend reversal or continuation.
AMBCrypto’s analysis of Bitcoin dominance has provided clues about the future direction of the broader market.
Combining this with Tether’s dominance, it appears that altcoin bulls may face some complications in the coming weeks.
Bitcoin Dominance Shows Verdict
Source: Blockchain Center
In June, the altcoin season index scores were around 25, signaling a strong Bitcoin season. Over the past two weeks, this trend has started to reverse. The index jumped to 46 on July 12, but has since fallen back to 35.
This indicated that altcoin season was upon us, but other metrics disagreed.
Source: BTC.D on TradingView
AMBCrypto analysis of the Bitcoin dominance chart on the daily timeframe showed a range formation between 54% and 56.4%. The metric has been below the mid-range level for the past month.
The implication was that, like prices, the dominance chart also lacked a strong trend. It showed that the altcoin market had suffered along with Bitcoin.
Higher timeframes showed BTC.D trending higher. This was a signal that BTC bets are likely to outperform the broader market in Q3 2024.
Why Bitcoin Will Be in the Spotlight
Source: USDT.D on TradingView
Bitcoin is the king of cryptocurrencies and is the main indicator for understanding market sentiment.
A large influx of capital into BTC is needed before it can be converted into altcoins, kicking off the legendary altcoin season.
Tether dominance chart has seen a retracement as BTC prices have risen over the past three days. This has suggested a market-wide price rally over the weekend.
However, USDT.D is expected to resume its downtrend after this bounce, which could be very good news for Bitcoin prices.
Source: CryptoHow Much
Light Bitcoin [BTC] Price forecast 2024-25
The Puell Multiple is a measure of how profitable mining pools are compared to the previous year. At press time, the metric was at 0.72. A reading of 0.5 or lower would be a strong buy signal.
This is another sign that Bitcoin price is expected to rise in the coming months.