Altcoins
Will Bitcoin Dominance Jump 4%, Ending the Altcoin Season?
Altcoin season sees a decline in probability due to changing market conditions, while Bitcoin price continues to rise.
As most cryptocurrencies remain weak due to lack of liquidity in the market, the arrival of this season is further delayed.
Altcoin season isn’t over yet
Altcoin season is noteworthy a delay as the market does not support an increase in the price of altcoins. The bullish trend in the altcoin market is showing signs of weakening, as indicated by the Average Directional Index (ADX).
The ADX is approaching the critical threshold of 25.0, below which the current trend would lose strength and indicate a lack of momentum.
Altcoin Market ADX. Source: Trading View
This potential decline in trend strength is a worrying sign. A weakening trend can reduce investor confidence and reduce buying interest, further exacerbating the market’s challenges.
Last season, most of the resources in The altcoin market has struggled to achieve significant growth. In particular, only Toncoin and PEPE managed to record gains above 50%, highlighting their exceptional performance in a largely stagnant market.
To know more: Top 12 Altcoin Exchanges for Cryptocurrency Trading in July 2024
The limited growth of most altcoins is a worrying indicator of the overall condition of the cryptocurrency market. If this trend continues, it could lead to increased uncertainty and volatilityimpacting investor sentiment and market stability.
Bitcoin Dominance Fails to Reach New Highs
Bitcoin price surged to recently surpass the $68,000 mark, which led to its dominance rising to 55.49%. The recent fluctuation led to BTC Dominance Forms a Symmetrical TriangleThis bullish continuation pattern suggests that a 4.34% increase is likely which could take Bitcoin dominance to 57%.
To know more: What are the best altcoins to invest in July 2024?
This would further hamper the potential of a Altcoin season is imminentIf BTC.D fails to follow the pattern, a drop below 54.39% could open the door for an altcoin recovery, triggering an altcoin season.
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