Bitcoin Dominance Extends the Wait for Altcoin Season as the Market Suffers
- WBOYOriginal
- 2024-08-08 03:26:41664browse
The wait for an Altcoin Season was seemingly coming to an end towards the end of June, but the crash that followed extended the wait.
The crypto market has been on a downturn since June, with Bitcoin’s dominance increasing as a result. This has led to a delay in the arrival of an Altcoin Season, which is now expected to be pushed back further.
As of July, BTC.D has risen to 57.07% from 55.49%. A breakout from a symmetrical triangle pattern indicates a potential 4.33% increase in BTC’s dominance. This would place BTC.D at around 57.90%.
According to Cryptoquant Head of Research Julio Moreno, Bitcoin prices are approaching key support levels, and valuation metrics suggest a potential extension of the market correction.
“Bitcoin prices are again hovering at key support levels, with risks of this correction extending further according to valuation metrics. The MVRV ratio has fallen below its 365-day moving average, a condition that in previous cycles has signaled an extension of the price decline (COVID crash in March 2020 and May 2021) or the start of a bear market (November 2021). Investors should monitor these valuation metrics to assess the possibility of a price bounce or a further correction,” Moreno told BeInCrypto.
This signals an extended delay in the arrival of an Altcoin Season.
According to the Altcoin Season index, the market is currently in a Bitcoin season. For this to change, at least 75% (38) of the top 50 altcoins (excluding stablecoins) would need to outperform BTC over the last season (90 days).
However, only 5 of the top 50 crypto assets are in the green over the past season, while 90% of the cryptocurrencies are bearing losses.
Thus, at present, let alone in an altseason, recovery from altcoins is a matter of concern. Consequently, August will most likely not witness an Altcoin Season.
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