The recent volatility in Bitcoin’s dominance could indicate that altcoin season is approaching sooner than many traders expected, according to one cryptocurrency analyst.
“The reason to be confident in altcoin price trends is because the Bitcoin dominance chart is looking bearish and has been for weeks,” crypto analyst Matthew Hyland said in an X post on Friday.
“It’s good to see a continued downtrend, so this relief rally is a bounce in a downtrend,” Hyland said. Hyland said in a separate video on Saturday that recent Bitcoin (BTC) price movements may have been orchestrated by traditional financial giants.
“Over the past month, I’ve maintained the view that a lot of this is actually just manipulation and essentially Wall Street trying to set itself up,” he asserted.
Bitcoin dominance has declined by 5% since May
According to TradingView, Bitcoin dominance, which measures Bitcoin’s overall market share, has fallen by 5.13% over the past six months and held at 59.90% at the time of publication.
It was on November 4th that Bitcoin fell below the $100,000 price level for the first time in four months, sparking market concern about where Bitcoin’s price would go next.
According to CoinMarketCap, Bitcoin is trading at $102,090 at the time of publishing this article.
While Hyland speculates that the altcoin market could gain momentum soon, other indicators still point to a Bitcoin-centric market.
CoinMarketCap’s Altcoin Season Index currently sits at #28 out of 100, well within the “Bitcoin Season” range.
Altcoin season may be different from previous cycles
The last time the indicator signaled “altcoin season” was on October 8, just days after Bitcoin hit an all-time high of $125,100, when traders seemed to expect capital rotation to move further up the risk curve.
However, the index quickly went into risk-off mode after the October 10 market crash wiped out around $19 billion in leveraged positions from the crypto market.
Related: The voices behind the Bitcoin price crash are coming from selfish sellers: Analyst
Some crypto executives predict that the next altcoin season will be more selective and focused than previous market cycles.
Mene Huthuni, CEO of algorithmic trading tools developer Coinquant, recently said that older cryptocurrencies that operate or are expected to receive exchange-traded funds (ETFs) will soak up much of the money deployed during the next altcoin season.
“Not all coins will bring huge profits. Liquidity will be concentrated in certain places, and of course dinosaurs are one of them,” Futuni said.
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