Lorenzo Stroe
Independent Analyst
- A lot of crypto traders expect the alt season to begin soon, but they could be wrong.
- Bitcoin’s dominance continues rising and it’s on the verge of cracking a critical resistance level.
One of the most common theories and indicators of the beginning of alt seasons is the decline in Bitcoin’s dominance which currently stands at 68.4%. In 2017, Bitcoin’s dominance hit 63% right before plummeting down to 32% which paved the way for the alt season.
Bitcoin’s dominance needs to plummet for the alt season to begin
Most traders and analysts agree, Bitcoin’s dominance needs to decline or at least remain flat for an alt season to begin. So far, Bitcoin’s dominance has been rapidly rising since November 2020.
I do think there will be an alt season of sorts but this would be a real, real heartbreaker for some.
— f i l ₿ f i l ₿ (@filbfilb) January 4, 2021
As i say, i doubt it but... its there and possible. pic.twitter.com/hOuBOlmvjW
According to a popular analyst on Twitter, Bitcoin’s dominance seems to be facing a critical resistance level at around 71.5%. This point hasn’t been cracked since 2017 and would indicate that alt season will have to wait longer. It’s also important to note that Bitcoin’s dominance percentage currently cannot be directly related to the past as the cryptocurrency market has thousands of other coins and tokens that are inflating the altcoin market capitalization.
A breakout of 71.5% would be devastating for many altcoins as many investors are already worried due to the SEC. A few weeks ago, the SEC sued Ripple because it considers XRP a security. Other prominent coins like XLM could be potential targets in the future.
Alt season chart
On the other hand, if Bitcoin’s dominance plummets and Ethereum continues rising, an alt season would be likely. In 2017, Bitcoin hit an all-time high of around $20,000. Ethereum price followed it but later. Bitcoin then crashed significantly while Ethereum continued surging and the alt season started.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Crypto Today: Poland to adopt BTC as Hedera, Tezos rally alongside Microstrategy investing another $4.6B
While Solana’s daily time frame gains were subdued at 2.2%, the SOL price action drew attention on Monday as traders brace for a potential breakout to new all-time highs.
Bitcoin could see another parabolic run following rising institutional interest
Bitcoin (BTC) began the week positively, rising over 3% above the $91K threshold on Monday. Despite the recent rise, BTC could begin another extended bullish move as top firms are increasing their Bitcoin holdings and potentially adopting it as a reserve asset.
Ethereum Price Forecast: ETH risks decline to $2,258 as exchange reserves continue uptrend
Ethereum (ETH) is up 1% on Monday after ETH ETFs hit a record $515.5 million inflows last week. However, rising exchange reserves and realized losses could trigger bearish pressure for the top altcoin.
SOL Price Forecast: Solana nears all-time high as VanEck, BONK spark $2.9B inflow
Solana (SOL) price reached a new monthly time frame peak of $248 on Monday, November 18, up 60% within the last 14 days. Derivatives market trends signal potential for more upside as bulls set their sights on new all-time high.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.