The crypto market has witnessed a resurgence in bullish momentum over the last few days, led by an uptick in Bitcoin prices. This surge has sparked speculation of potential gains in various altcoins, hinting at the possibility of an upcoming altcoin season.
In a recent analysis, crypto expert Kevin (@Kev_Capital_TA) highlighted a significant development in the form of a daily death cross in Bitcoin’s dominance chart. This rare occurrence could signal a shift in cryptocurrency investments in the near future, impacting both Bitcoin and the altcoin market.
Bitcoin Dominance Chart Indicates Formation of Daily Death Cross
An examination of the Bitcoin dominance chart reveals the imminent formation of a death cross in the daily candlestick timeframe. A death cross occurs when a short-term moving average crosses below a long-term moving average, typically indicating a bearish trend. A decline in Bitcoin’s dominance often corresponds to a strengthening presence of altcoins in the market.
According to analysis by Kevin, the daily death cross on Bitcoin’s dominance chart is occurring at a macro high for the first time in four years. This trend, coupled with previous macro golden pocket rejections, reinforces the potential shift in market dynamics towards altcoins.
Implications for the Crypto Market
Kevin’s analysis draws parallels to a previous instance in 2021 when a daily death cross at a macro high preceded the onset of an alt season. Back then, Bitcoin’s dominance fell below 40% after hovering around 63% of the total market cap. A similar scenario may be unfolding now if the current death cross leads to a sustained decline in Bitcoin dominance.
While Bitcoin remains a dominant player in terms of market inflows, the performance of altcoins like XRP, Dogecoin, and Solana could challenge this dominance. Ethereum, known as the king of altcoins, has not yet shown a significant rally during this cycle.
Offering a different perspective, analyst TechDev highlighted the potential start of an altseason. His analysis of the six-month candlestick timeframe on the Bitcoin dominance chart suggests that current conditions are favorable for altcoin movements, reminiscent of past rallies in 2017 and 2021.
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