- cryptocurrency market We are currently in a period of accumulation.
- seen this week market Sell with Bitcoin sink into a new area price floor.
- strong bounce altcoin add to phone call of the upcoming Altseason.
Bitcoin fell to a nine-week low this week after the Federal Reserve decided to keep interest rates on hold. Major cryptocurrencies have since shown a slight recovery, growing 1.4% in the last 24 hours, but altcoins have generally performed better. A few of the top 100 tokens recorded double-digit gains, including PEPE, Wormhole, and Arweave.
Meanwhile, Bitcoin Dominance (BTC.D) plummeted on Wednesday, which coupled with the outperformance of altcoins suggests a potential alt season is approaching.
Bitcoin dominance reaches peak
BTC.D fell 54.87% to 53.91% on Wednesday, hitting a four-week low, adding to calls for the upcoming alt season.
Bitcoin’s dominance in the cryptocurrency market has continued to decline since hitting a yearly high of 57% on April 13. This trend caught the attention of YouTuber Scott Melker. Best in the region For Bitcoin dominance.
Trader “Mikybull 🐂 Crypto” said BTC.D’s decline on Wednesday fell below a rising wedge pattern, and combined with a bearish divergence in the Relative Strength Index, this move could mark an “explosive alt season.”
However, while altcoins appear to be outperforming Bitcoin, that in itself does not confirm an alt season.
Alt season on?
There is no clear, agreed upon definition of altseason. Nonetheless, these periods are typically characterized by significant rises in altcoins relative to fiat currencies such as Bitcoin and the US dollar. Altseason signals a shift in investment sentiment as it reflects a heightened appetite for risk among cryptocurrency investors, including the dynamics of capital flows from Bitcoin to altcoin projects.
The willingness to embrace high-risk, high-reward opportunities highlights the optimism and bullish sentiment that typically prevails in the markets during alternative seasons.
Wednesday’s cryptocurrency market sell-off was followed by a strong rebound in altcoins, as evidenced by the long lower wick on the May 1 daily candle for the total cryptocurrency market cap excluding the BTC chart. This indicates that investors quickly accumulated altcoins at discounted prices.
But bears refused to break above $1 trillion on Wednesday and Thursday, suggesting alt season is not yet here.
On the flip side
- There are countless events that have weakened Bitcoin’s dominance. Alt season is not coming.
- altcoin Benefits in formation percentage profit (and casualty) because it is smaller market capitalization.
Why This Matters
Soaring altcoin prices are likely to spark renewed optimism and attract new capital and interest in cryptocurrencies.
Learn more about how to discover altseasons here.
Altcoin Season: Tips and Tactics for Market Research
The weekly sell-off in the cryptocurrency market added to investor anxiety.
Crypto Bear Sentiment Captivates Investors as Fear Surges