Bitcoin Hits Resistance; Altcoin Season on the Horizon?
The Most Important Points in Brief
- Bitcoin dominance has reached a resistance zone and may be heading for a decline.
- A decline in Bitcoin dominance could signal the start of an altcoin season.
- The Altcoin Season Index is currently at 35, with a value of 75 required to confirm an altcoin season.
- The Stablecoin Supply Ratio suggests a possible increase in buying power in the altcoin market.
Bitcoin Dominance Reaches Critical Resistance Zone
Bitcoin dominance (BTC.D), an indicator that measures Bitcoin’s share of the total market capitalization of the crypto market, has reached an important resistance level just below 60%. Since September 8, dominance has risen from 56.87% to 58.59% before pulling back slightly. An increase in Bitcoin dominance indicates that Bitcoin is outperforming the rest of the market. However, this could soon come to an end, as the resistance zone signals a potential end to the upward trend.
Resistance at 60%: What Does It Mean?
The 60% mark represents an important psychological and technical resistance. Should Bitcoin dominance bounce off this point, it could redirect capital into the altcoin market. Such a capital flow would be a strong signal for the beginning of an altcoin season. In this phase, altcoins, which are alternative cryptocurrencies to Bitcoin, benefit from above-average price increases.
Altcoin Season on the Horizon?
The Altcoin Season Index, which measures how well altcoins perform compared to Bitcoin, is currently at 35. A value of 75 or higher is required to signal a true altcoin season. A rising index value could be a positive sign for long-term investors, as it indicates increasing opportunities for altcoin projects.
Stablecoin Supply Ratio: Another Indicator
Another important indicator suggesting an upcoming altcoin season is the Stablecoin Supply Ratio (SSR). This value reflects the ratio of the market capitalization of stablecoins to Bitcoin. A declining SSR indicates that buying power in the market is increasing, as more capital flows into stablecoins. This could suggest that investors are ready to invest in altcoins, which in turn could drive the prices of these coins higher.
Our Assessment
Current market indicators suggest that an altcoin season could be approaching. Bitcoin dominance is facing a critical resistance, and the Stablecoin Supply Ratio indicates increasing buying power. However, caution is advised, as the Altcoin Season Index is still far from the required 75 points. It remains to be seen whether this trend will confirm itself in the coming weeks.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $97,127.00 |
| 24h % | 0.74 % |
| 7d % | -4.34 % |
| 30d % | 3.43 % |
| 60d % | 44.26 % |
| 1y % | 119.96 % |
| Market Cap | $1,922,904,242,023.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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