The founders of cryptocurrency analytics firm Glassnode have warned that altcoins could lose all bullish momentum after last week’s market correction.
Jan Happel and Yann Allemann, who go by the name Negentropic on social media platform Last 7 days.
According to the Glassnode co-founder, unless Bitcoin recovers a key psychological price point, traders and investors are likely to take a risk-averse approach to altcoins.
“Is this the end of altcoin season?
Bitcoin dominance is surging after falling below $100,000, with the altcoin losing important support. The BTC environment has become stronger as dominance has risen and the upward trend has resumed.
Once BTC stabilizes above $100,00, we could see altcoins pumping out of their current accumulation zone. Until then, Bitcoin will likely lead and altcoins will lag behind.”
The Bitcoin Dominance (BTC.D) chart tracks how much of the overall cryptocurrency market capitalization belongs to BTC. In current market conditions, the surge in BTC.D suggests that altcoins are losing value faster than Bitcoin.
As of this writing, BTC.D remains at 59%.
Looking at Bitcoin itself, Glassnode executives say long-term Bitcoin holders are dumping their holdings in large quantities as other groups of investors pick up the slack.
“The board of directors is constantly changing.
During this downturn, as BTC continues to flow out of exchanges, long-term holders are forced out, and short-term holders are jumping in without hesitation.
Whales have been accumulating quietly, miners have remained neutral, and the pressure to sell has only resulted in a board shakeup.
New hands are absorbing sales.”
As of this writing, Bitcoin is worth $97,246.
Don’t miss a beat – subscribe to get email alerts delivered straight to your inbox
Check Price Action
follow us XFacebook, Telegram
Daily Hodl Mix Surfing
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and that you will be responsible for any losses you may incur. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.
Image created: DALLE3