Bitcoin dominance threatens to ‘top high’ even as BTC price stares at $45,000.
Bitcoin (BTC) risks “rolling over” to undo its latest uptrend, new analysis warns as altcoins surge.
in post On December 9th, popular analyst and social media commentator Matthew Hyland on X (formerly Twitter) expressed caution regarding BTC price action.
Bitcoin dominance risks breaching key levels
Bitcoin bulls maintained their hot momentum through the end of Wall Street trading this week. BTC/USD hit a 19-month high of $44,729 on Bitstamp on December 8.
Data from Cointelegraph Markets Pro and TradingView tracked subsequent returns below $44,000 as Bitcoin consolidated in its intraday range.
But for Highlands, there are more ominous signs that the bull market could be in trouble after a strong 60% gain since early October.
He said Bitcoin’s share of the overall cryptocurrency market capitalization is the smoking gun.
“Dominance is rolling over following a named bearish divergence. I gave back all the profits I made from the last rise,” he wrote in an X post.
“If the price closes below 51.81, it would be the first low in over a year and the end of the uptrend.”
Hyland cited the recent surge in Bitcoin dominance, which reached 55.26% on December 6, its highest level since April 2021. The quick recovery has moderated the gains, with dominance at 53.4% at the time of writing.
Altcoins extend intraday gains
Others believe that this reversal of dominance could allow the altcoin to launch a massive rally of its own. This is a phenomenon commonly known as “alt season.”
Related: Price Analysis 12/8: BTC, ETH, BNB, XRP, SOL, ADA, DOGE, AVAX, LINK, MATIC
The top 10 cryptocurrencies by market capitalization, led by Cardano (ADA) and Avalanche (AVAX), are up 22% in 24 hours.
Only the largest altcoin, Ether (ETH), was still trading, up 12% over the past seven days. ADA and AVAX also led the week with gains of 50%.
“Bitcoin dominance fell 2% today and alt-Bitcoin has gone crazy,” said popular trader Jacob Canfield. said The December 6th part of the commentary has X number of subscribers.
“Like I said, it’s just taste. When that dominance really starts to wane is when we see the faces of the alt season we all know and love melting.”
On this day, the total altcoin market capitalization rose 2.4%, and the monthly increase rate in December was 18.4%.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
