Bitcoin’s Market Dominance Falls Below Two-Year Support Level
Bitcoin remains the leading digital asset, with its price fluctuating between $90k and $96k this week. Some experts are focusing on the potential for altcoins as Bitcoin's market dominance decreases.
Crypto commentators on Twitter/X note that Bitcoin's market dominance has fallen below its two-year support line, signaling a possible start to altcoin season, according to MikyBull Crypto.
Data from TradingView shows Bitcoin’s current dominance at 56.67%, down from 57% last week. This decline may impact the overall crypto market in December and beyond.
On-chain and market data indicate that altcoins are positioned for growth, with MikyBull Crypto suggesting the season began on November 30th.
Wow, Bitcoin dominance has just broken down the 2-year support.
We are indeed officially in #ALTSEASON folks! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn
— Mikybull
Crypto (@MikybullCrypto) November 30, 2024
A Look At Bitcoin Market Dominance
Bitcoin dominance is a key metric for evaluating its relative market share within the crypto sector. A higher percentage indicates better performance for holders and investors.
As of December 2nd, Bitcoin's dominance stands at 55.3%, down from 58.9% the previous month. The decline suggests that investors may be reallocating funds to altcoins, such as XRP, which is currently experiencing an increase.
Investors appear to be diversifying their portfolios by exploring alternative high-growth coins.
Analysts And Crypto Commentators Offer Differing Insights
Several altcoins are currently gaining traction. Ether is seeing rising prices and demand for leveraged ETH exchange-traded funds, with a reported 160% increase in demand following the November 5th US elections. Analysts expect Ether to reach $4k soon, while XRP trades above $2.
Pav Hundal of Swyftx suggests that Bitcoin's dominance could still rise to 65%, 67%, or even 70% before declining, citing the complexity of market factors influencing altcoin movements.
Contrarily, Ki Young Ju of CryptoQuant advises caution regarding imminent altcoin surges. He remains optimistic about Bitcoin due to ongoing institutional support, suggesting that altcoins need significant capital inflows to thrive rather than depending solely on Bitcoin's trends.
Featured image from Finimize, chart from TradingView