Around three weeks back, altcoins suddenly started to rip higher; Ethereum gained 10% in a single day, Litecoin rocketed up by 8%, XRP gained some 20-30% in three days’ time, and so on and so forth.
But since then, this odd trend in the crypto market, which has been dominated by Bitcoin for the better part of a year now (and especially since the start of 2019), has paused. After hitting 69%, Bitcoin dominance has been relatively flat, leading some to suggest that it is BTC’s time to shine once again.
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Analysts, however, are expecting the altcoin subset to soon begin their crusade higher.
Altcoins to Soon See Price Boom
Analyst Chonis recently noted that Bitcoin dominance — the percentage of the cryptocurrency market made up of BTC — is far from a support level, despite the metric’s stagnation. He thus claimed that he could see altcoins continuing to gain traction “until the historic dominance level of 67.2% is truly confirmed as continued support.”
(dominance)- I could still see giving up a couple more percentage points down to coins until this level of historic market capitalization is truly confirmed as continued support…
— BIG Chonis (@BigChonis)
Analyst NebraskanGooner has echoed this sentiment. He that his indicator is “signaling a trend reversal in [Bitcoin] dominance”, implying that the metric may trend towards 66%.
These expectations that Bitcoin may start to underperform altcoins comes as the leading cryptocurrency has started to stagnate — a market trend that analysts say is indicative of or a precursor to relative price strength in alternative cryptocurrencies. As a trader in reference to the chart below:
“The more I see this PA the more I feel this will be the case. I think people will continue to overanalyze the BTC range and miss out on significant alt movements. Not me.”
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Featured Image from Shutterstock
