Altcoin Season Might Be Coming: Here Are the Critical Technical Details!

bitcoin (BTC) dominance is bearish despite a relief rally. Bitcoin dominance can be effective for the possible price action of altcoins. For this reason, it is closely followed by many investors.

Indeed, as of November 5, Bitcoin market dominance dropped to 38.67%, a four-year low. According to CoinMarketCap data, BTC last recorded a similar drop in market dominance with 38.19% on June 10, 2018. This situation altcoin interpreted as a critical development for the market.

Bitcoin market dominance
Bitcoin market dominance

Effects of Bitcoin Domination Decline

The dominance ratio is the market value of BTC, cryptocurrency represents the ratio to the rest of the market. Over the years, the metric has had varying results across the entire industry. The metric often signals potential market results and influences trading decisions. The altcoin market also has the potential to be affected by this metric.

The scenario of falling Bitcoin price and increasing dominance is often interpreted as an ‘altcoin bear market’. On the other hand, when both Bitcoin price and dominance fall, a ‘bear market’ is interpreted for the cryptocurrency market.

As a result, when the value and dominance of Bitcoin rises, it is a potential bull market indicator, while if the price of Bitcoin rises with a falling dominance, it indicates a possible altcoin bull market.

Although Dominance Rate Decreases, Price Rises

Bitcoin gained the $21,000 level and has been trading in the green zone for the past 30 days. The pressure from dominant macroeconomic factors driven by rising inflation and rising interest rates continues. Despite this, BTC wants to stay strong.

In recent weeks, BTC has mainly traded in the $20,000 range. However, positive US jobs data pushed it to $21,000.

when is the altcoin market

Altcoin Data Sounds Pretty Optimistic

Overall, many altcoins have shown some relief recently as Bitcoin dominance remains below 40%. For example, it was clear from the data that altcoins dominate the top 50 best performing assets.

In this case, the top 14 assets with positive performance are occupied by altcoins, while Bitcoin ranks 20th with a return of -8.5% over the past 90 days.

Overall, the altcoin market has received increased attention thanks to significant triggers in return. It can be seen that Bitcoin bulls have a technical advantage over the bears. Notably, the market has witnessed several cryptocurrencies breakout, despite widespread pressure as investors continue to be cautious.

As we have reported as Koinfinans.com, this rise is led by meme coins. The news from the Twitter front has increased the price of the popular altcoin Dogecoin. XRP has also received positive news from its lawsuit with the SEC and is on the rise.

Investor interest will increase if the market outlook remains optimistic. This will play a critical role in the altcoin season. The news from the FED front will also play a critical role in this regard.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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