Altcoin Explosion Incoming? Analyst Warns Bitcoin Dominance Trend Points to Imminent Eruption
A key bitcoin dominance metric is flashing signs of a potential impending altcoin season, according to cryptocurrency analyst elcryptoprof.
Bitcoin dominance refers to bitcoin’s market capitalization as a percentage of the total crypto market cap. When bitcoin dominance is high, bitcoin outperforms altcoins. When it’s low, altcoins are gaining ground compared to bitcoin.
The analyst notes that the last three times the 30-day exponential moving average (EMA) of bitcoin dominance touched the 200-day simple moving average, an altcoin season kicked off shortly after.
“The last three times when #Bitcoin Dominance touched the EMA 200 line and broke the uptrend a short time later, we saw an Altseason,” the analyst tweeted.
Currently, bitcoin dominance is right around those same levels, with the 30-day EMA touching the 200-day SMA. Additionally, bitcoin’s uptrend of higher highs and higher lows versus altcoins has decisively broken down.
This combination of technical factors suggests altcoins could soon begin outperforming bitcoin, kicking off an extended altcoin season.
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Show more +However, the timing of the start of previous altcoin seasons has been difficult to predict. While bitcoin dominance offers clues, it does not pinpoint exactly when altcoins will begin surging.
Nonetheless, the analyst concludes that these conditions indicate an altseason is looking more likely in the coming weeks and months. With bitcoin dominance dropping and its uptrend broken, many major altcoins like Ethereum appear poised for a rally.
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