While the cryptocurrency market awaits the effects of the Bitcoin halving, a change in dynamics is also noticeable. Analyst Michaël van de Poppe comments on the change in BTC dominance and altcoin He drew attention to the possible bull market in the market.
Van de Poppe emphasized the importance of monitoring BTC dominance as a leading indicator of market sentiment and potential opportunities in other assets. While there is currently a 50% dominance and this makes it a buying opportunity for altcoins.
The analyst notes that the ascending wedge pattern dominated by Bitcoin has historically signaled potential strength for altcoins when broken to the downside. A breakout of this formation could pave the way for significant gains in coins, indicating a possible change in market dynamics.
Van de Poppe, Bitcoin He says altcoins have lost six percent of their value compared to Bitcoin in the last three months, even though its price has remained the same in USD terms. He thinks this is a great opportunity for investors. Despite recent corrections, the analyst believes that declines generally mark major entry points for altcoin investment.
Analyst, capital cryptocurrency He made an important discussion about how the market flows between various segments and how market rotations work, highlighting how changing investor preferences and market conditions affect this process.
Finally, he suggested compounding returns by carefully shifting investments between altcoins whose prices have already increased significantly and altcoins whose prices are about to rise even further. He advises investors to focus on coins showing significant price movements and consider strategically rotating profits.
Is Altcoin Season Approaching?
Although Van De Poppe stated that the altcoin season is in an upward trend, the fact that the index rose above 75 in early 2024 and then dropped to 25 after the halving event and traders’ focus on Bitcoin calls into question the possibility of another season. However, despite Bitcoin’s dominance, the coins have recently faced fears of selling pressure leading to larger losses. Currently, the index is at 39, which shows that it does not have a close season.
