In addition to its price hitting a 19-month high, Bitcoin dominance also hit local highs, topping 54%. However, a minor retreat in the metric and a potential BTC correction could be good news for altcoins.
On Dec. 4, crypto trader Jacob Canfield commented on the dominance decline and potential for altcoin moves.
“I’m liking this Bitcoin dominance 4-hour rejection at prior resistance. This could mean a nice couple days of big altcoin moves.”
BTC prices have surged almost 14% over the past week, but altcoins have not really followed.
I’m liking this Bitcoin dominance 4 hour rejection at prior resistance.
This could mean a nice couple days of big altcoins moves.
Play the strong movers on low time frame pull backs.
If you read my tweet from this morning, a lot of them have found strong bounces off their… pic.twitter.com/J3taCVsq3z
— Jacob Canfield (@JacobCanfield) December 5, 2023
Still Early For Altcoins
Another chart that many analysts are sharing is the total market capitalization minus BTC. This shows all other crypto assets, including stablecoins, and it remains in the accumulation zone.
Trader and investor “EliZ” shared this chart, noting that it was approaching resistance and on the verge of a breakout.
you haven’t seen anything yet…if this breaks higher…the real fun begins
ALTCOINS pic.twitter.com/26O5GO4dWX
— EliZ (@eliz883) December 4, 2023
On Dec. 4, analyst “Income Sharks” commented on the same chart:
“Missing out on a 9% move on Bitcoin won’t sting as much when some ALTS and Microcaps make a 900% move.”
Moreover, many of the high-cap altcoins are still way down from their peaks. Ripple, Cardano, Dogecoin, Avalanche, and Polkadot are all more than 80% down from their all-time highs. Solana, Chainlink, and Polygon are still more than 70% down despite recent gains.
Bitcoiner Jimmy Song compared altcoin prices to the last time BTC was above $40,000, which was in May 2022.
Most of them were much higher than today’s levels, but the bear market was intensifying at the time, and it was just before the Terra/Luna collapse, so it was not the best of comparisons.
Check out what it looked like when BTC was last above $40k vs now.
There is no reason to go into altcoins. pic.twitter.com/WSvu3PKgmp
— Jimmy Song (송재준) (@jimmysong) December 5, 2023
Crypto Market Outlook
Crypto markets have remained flat on the day, with total capitalization pausing at $1.61 trillion. Bitcoin has reached resistance and was trading at $41,709 at the time of writing.
However, nearly all of the leading altcoins were in the red again, with 2-4% declines. There were larger losses for Solana, Chainlink, Polygon, and THORChain.
Bitcoin smart contract protocol Stacks (STX) were bucking the trend, surging 33% on the day.
Read the full article here