bitcoin (btc) risks “rolling over” to cancel its latest bullish trend, new analysis warns as altcoins rise.
in a mail On X (formerly Twitter) on December 9, popular social media analyst and commentator Matthew Hyland sounded cautious regarding btc price action.
bitcoin dominance risks breaching key level
bitcoin bulls maintained momentum until the end of the week's Wall Street trading, when the btc/USD pair sealed new 19-month highs of $44,729 on Bitstamp on December 8.
Data from Cointelegraph Markets Pro and TradingView Subsequent performance below the $44,000 mark followed, with bitcoin consolidating in an intraday range.
For Hyland, however, there are more ominous signs that the bull market may be in trouble after solid 60% gains since the beginning of October.
The irrefutable proof, he says, lies in bitcoin's share of the overall crypto market capitalization.
“The dominance is changing based on the bearish divergence that was observed. “He has returned all the profits from the promotion the other day,” he wrote in the X publication.
“If it breaks and closes below 51.81, it would be the first lower low in over a year and the end of the uptrend, along with a likely high.”
Hyland referred to the recent rise in bitcoin dominance, which on December 6 reached 55.26%, its highest level since April 2021. A rapid reversal saw the bullish progress unravel, with dominance at 53, 4% at the time of writing this article.
Altcoins extend intraday gains
Others believe that such a reversal of dominance will allow altcoins to begin their own major rally, a phenomenon commonly known as “altseason.”
Related: Price Analysis 8/12: btc, eth, BNB, XRP, SOL, ADA, DOGE, AVAX, LINK, MATIC
This seemed to be on the move already that day, with the top 10 cryptocurrencies by market cap led by Cardano (ADA) and Avalanche (AVAX), which gained 22% in 24 hours.
Only the largest altcoin, Ether (eth), remained afloat and was still up 12% in the last seven days. ADA and AVAX were also the leaders of the week, with gains that exceeded 50%.
“A 2% drop in bitcoin dominance and alternatives went crazy today,” popular trader Jacob Canfield said X subscribers in part of the comment on December 6.
“Like I said, it's just a sample. When the dominance really starts to fall is when we see the face melt in the alternate season we all know and love.”
The total altcoin market capitalization increased by 2.4% on the day, with gains so far in December of 18.4%.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
