Friday, June 18, 2021

When ‘alt season?’ Now, says analyst as Bitcoin dominance hits 6-month low

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Bitcoin (BTC) now accounts for lower than 60% of the full cryptocurrency market capitalization, heralding the arrival of “alt season 2.0.”

In a tweet on March 29, analyst Filbfilb, co-founder of buying and selling suite Decentrader, announced that situations have been lastly proper for a recent altcoin surge as their whole market capitalization is hitting new highs of practically $750 billion.

Altcoin market capitalization. Supply: CoinMarketCap

Bitcoin dominance at its lowest since October 2020

Highlighting the present BTC/USD spot worth, the mixed altcoin market cap in U.S. {dollars} and Bitcoin’s market cap dominance, Filbfilb summarized the market in what shall be music to the ears of altcoin merchants all over the place.

“Alt szn,” he commented, conjuring a standard nickname for the phenomenon of altcoins rising when Bitcoin cools or consolidates after a worth surge of its personal.

“Alt season” has been a full three years within the making. As Cointelegraph reported, expectations of a broad altcoin resurgence have long been high but ultimately left unfulfilled.  

Now, however, with Bitcoin consolidating after hitting all-time highs of $61,700, circumstances appear to have played into traders’ hands.

At the time of writing, Bitcoin’s market cap dominance was 59.4%, its lowest since late October 2020.

Cryptocurrency market cap dominance chart. Source: CoinMarketCap

The latest catalyst is arguably Visa, which on Monday announced that it would support stablecoin USD Coin (USDC) for settlement, thus leveraging the Ethereum blockchain. ETH/USD noticed a modest 4.8% uptick in response, with the market cap share of Ether (ETH), the biggest altcoin, nonetheless in decline versus January.

Zooming out, the foundations are nonetheless being laid for what Cointelegraph analyst Michaël van de Poppe expects shall be a “very bullish” summer for altcoins, notably because the market capitalization has been breaking new highs, nearing $750 billion.

“Ethereum goes to shock everybody massively,” he wrote concerning the Visa resolution.

Earlier worth forecasts for ETH/USD have included $5,000 and even $10,000 as a mid-term estimate.

Altcoins look nice,” fellow analyst Scott Melker added.

“Backside in” for BTC?

For Bitcoin, in the meantime, indicators of a bullish comeback remained muted Monday after markets hit the buffers at February’s all-time highs of $58,300.

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Intraday exercise was nonetheless robust, with the pair up by over 4% up to now 24 hours.

Amongst market individuals, discuss thus turned as to if final week’s bounce off $50,000 represented a definitive worth ground within the ongoing consolidation interval.

“It may very nicely be that the BTC backside is in,” in style Twitter account Rekt Capital estimated on Monday.

“If that is certainly the case, then which means $BTC bottomed after a two-week retrace for the second time this yr. Common Bitcoin retrace in 2017 was ~16 days.”

BTC/USD retracement chart. Supply: Rekt Capital/Twitter

As of publication time, BTC/USD circled $58,000, displaying resilience in what’s the begin of its closing resistance block earlier than coming into uncharted worth territory as soon as once more.