Bitcoin (BTC), the largest cryptocurrency by market capitalization, is one of the best performing digital assets so far in 2024. Despite its recent struggles over the past two quarters, the cryptocurrency startup is up more than 137% over the past year. .
Bitcoin Dominance Vs. Ethereum Up 6% in 2024
According to a recent report by IntoTheBlock, Bitcoin has placed a wide gap between itself and other digital assets in the market. The blockchain analytics platform reported a 6% increase in BTC dominance over Ethereum (ETH) and stablecoins so far in 2024.
Data from IntoTheBlock shows that Ethereum, the largest altcoin by market capitalization, is currently trading at its lowest level compared to BTC. This underperformance of ETH was caused by the introduction of a spot exchange-traded fund (ETF) which was not very successful.
Bitcoin ETFs have accumulated nearly $18 billion in the past eight months, while ETH ETFs have recorded the most net outflows since their launch in late July. This trend can be attributed to investors’ preference for BTC due to its stability.
Finally, the introduction of exchange-traded funds helped Bitcoin to dominate other assets in the crypto market. However, the famous crypto analyst X has put forward an interesting prediction about the dominance of Bitcoin and altcoins in the current cycle.
Altcoin Season May Be Here – Here’s How
Crypto analyst Ali Martinez took to X to explain how Bitcoin’s current dominance may end and the altcoin season may begin. This analysis is based on the formation of technical patterns in the ruling BTC and total market capitalization (excluding the top 10 assets) charts.
According to Martinez, Bitcoin dominance may be preparing for a trend reversal due to the formation of a rising wedge chart pattern in the weekly time frame. Meanwhile, the altcoin market cap appears to be breaking out of a falling wedge pattern on the three-day chart.
Source: Ali_charts/X
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In context, a wedge is a technical analysis pattern characterized by inverting trend lines on a price chart. A rising wedge, which usually occurs in an upward trend, is a bearish signal, indicating that the price is about to reverse. On the other hand, a falling wedge usually indicates a bullish reversal.
Martinez stressed in his post that “altcoin season is just around the corner,” especially with Bitcoin’s dominance chart showing a possible reversal and the altcoin market cap witnessing a bullish breakout.
As of this writing, the total market capitalization outside of the top 10 assets stands at approximately $213.814 billion.
Total market cap (excluding top 10 assets) on the daily timeframe | Source: OTHERS chart on TradingView
The featured image was created with Dall.E, a chart from TradingView