Altcoins Poised For December Gains As Bitcoin Loses Ground: Analyst
03 December 2024 - 7:00AM
NEWSBTC
Although Bitcoin remains the world’s top digital asset, its price
oscillating between $90k and $96k this week, some experts are
looking ahead and beyond Bitcoin. Related Reading: Cardano To Hit
$10? Analyst Thinks It’s Happening This Cycle According to some
crypto commentators over Twitter/X, Bitcoin’s market dominance is
dipping, which means that altcoin season is about to start. In a
post by MikyBull Crypto, Bitcoin’s market dominance falls below its
two-year support line, creating plenty of opportunities for holders
and traders. According to TradingView, Bitcoin’s current dominance
is 56.67%, from last week’s 57%, breaking through its support level
for two years. Analysts say that the continuous dip in Bitcoin’s
dominance will impact the general crypto market this December and
onwards. On-chain and market data suggest that altcoins are poised
for a market run, with MikyBull Crypto saying that its season
started November 30th. Wow, Bitcoin dominance has just broken down
the 2-year support. We are indeed officially in #ALTSEASON folks!
https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn — Mikybull
🐂Crypto (@MikybullCrypto) November 30, 2024 A Look At Bitcoin
Market Dominance In crypto, analysts and market participants use a
variety of metrics to assess Bitcoin’s performance. Bitcoin
dominance is one reliable metric used to determine the relative
market share of the asset in the crypto sector. The higher the
percentage share of BTC, the better it is for holders and
investors. However, Bitcoin’s dominance score has been dipping in
recent weeks. As of December 2nd, it is at 55.3%, compared to 58.9%
last month. According to MikyBull Crypto, Bitcoin has dipped below
its two-year support. A declining Bitcoin dominance offers insights
into the traders’ and investors’ strategies. One takeaway is that
investors are reallocating their cash to other digital assets. Many
analysts say that some of these investors are reallocating funds to
altcoins, like XRP, which is now surging. Analysts say investors
are potentially diversifying their funds and looking at other
high-growth coin alternatives. Analysts And Crypto Commentators
Offer Differing Insights A few altcoins are currently leading the
market surge. Ether is experiencing a spike in price and increased
demand for leveraged ETH exchange-traded funds. On-chain data shows
the product experienced a 160% increase in demand immediately after
the November 5th US elections. Analysts remain bullish on ETH, and
many expect the asset to hit $4k soon. Then, there’s XRP, which
trades above the $2 level. Pav Hundal of Swyftx offers a
conservative opinion, saying that Bitcoin’s dominance score may
still hit 65%, 67%, or even 70% before it declines. He argues that
complex factors make it impossible to pick the right date for
altcoin’s surge or Bitcoin’s decline. Related Reading: Explosive
Breakout Ahead? XRP Bulls Rally Toward $2 Mark Not All Analysts See
An Altcoin Surge Soon Meanwhile, not all crypto commentators agree
that altcoins’ surge will come in days. Ki Young Ju of CryptoQuant
advises caution on times like this. The CryptoQuant CEO remains
bullish on Bitcoin, adding that there’s still institutional support
for Bitcoin, and it’s unlikely that they will refocus on
speculative assets. The CEO added that for altcoins to reach
all-time high market caps, these assets need a considerable capital
inflow to cryptocurrency exchanges. He said that altcoins must
develop strategies to earn capital instead of relying on Bitcoin’s
lack of momentum. Featured image from Finimize, chart from
TradingView
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