Altcoins
Bitcoin Dominance Shows Altcoin Season Is Still Away: Here’s Why
- Bitcoin has been falling since April.
- Tether and BTC dominance charts indicate a bullish future for crypto’s top dog.
Bitcoin [BTC] The stock price was trading at $62,500 at press time, just hours before the New York session. Although cryptocurrencies trade 24/7, the Monday New York session often marks a trend reversal or continuation.
AMBCrypto’s analysis of Bitcoin dominance has given clues as to where the broader market may be headed.
Combining this with Tether’s dominance showed that altcoin bulls could face some complications in the coming weeks.
Bitcoin Dominance Delivers Its Verdict
Source: Blockchain Center
In June, the Altcoin Season Index scores were around 25, indicating a strong Bitcoin season. Over the past two weeks, this trend has started to reverse. The index climbed to 46 on July 12, but has since fallen back to 35.
This indicated that an altcoin season could be imminent, but other indicators disagreed.
Source: BTC.D on TradingView
AMBCrypto’s analysis of Bitcoin dominance chart on the daily time frame showed a range formation between 54% and 56.4%. Over the past month, the metric has been below the average level.
The implication was that, like prices, the dominance chart also lacked a strong trend. It showed that the altcoin market suffered alongside Bitcoin.
The longer time frames showed that BTC.D was trending higher. This was a sign 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 weather vane for understanding market sentiment.
A large influx of capital into BTC is required before it can be transformed into altcoins, leading to the legendary altcoin season.
Tether’s dominance chart has seen a retracement as BTC prices have surged over the past three days. This suggests a market-wide price rally over the weekend.
However, USDT.D is expected to resume its downtrend after this bounce, which could be great news for Bitcoin prices.
Source: CryptoQuant
Read Bitcoin [BTC] Price forecast 2024-25
The Puell multiple is a measure of mining pool profitability compared to the previous year. At press time, the measure was at 0.72. A reading of 0.5 or lower would be a strong buy signal.
This is another sign that the price of Bitcoin is likely to appreciate in the coming months.