Bitcoin dominance tests key resistance

09/24/2024

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Since the start of September, precisely the 6th, the valuation of the cryptocurrency market witnessed a significant surge of 20.33%, climbing from $1.814 trillion to an impressive $2.182 trillion. This $368 billion uptick was predominantly propelled by the surge in Bitcoin.

An observation of the Bitcoin dominance metrics illuminates this scenario. From a percentage of 56.87 on the 8th of September, it escalated to 58.59% by the 18th of September before experiencing a slight retreat. The metric also nudged against a resistance area just shy of the 60% threshold.

The Bitcoin Dominance chart is a pivotal gauge, quantifying BTC's market cap relative to the encompassing crypto universe, which encompasses leading altcoins. An uptick in BTC.D signifies Bitcoin's superior performance against the broader market.

In recent analysis shared on X, the crypto strategist Ali Martinez pointed out that the dominance chart exhibited a rising wedge formation, potentially hitting a peak before the 60% resistance level. A decline in BTC dominance hints at capital migration towards altcoins.

This transition may trigger an alt season, a phase characterized by lucrative returns for steadfast altcoin project investors.

The altcoin season index displayed a score of 35, and for an alt season to be declared, a score of 75 is necessitated. The climbing index offers a glimmer of hope to dedicated participants in the crypto market.

A Hint from Stablecoin Metrics Towards an Imminent Altcoin Season

The trajectory of the stablecoin supply ratio metric indicates the market's preparation for an altcoin season. The metric's downward trend suggests an increase in the combined market cap of all stablecoins in comparison to Bitcoin.

Consequently, this signals a potential uptick in market liquidity. Therefore, an appreciation in the altcoin sector's valuation could be on the horizon.

Nonetheless, the current readings of the metric have not approached the lows seen in October 2023, which catalyzed the last significant rally.

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