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bitcoin, the world's largest cryptocurrency, is losing its supremacy in the market, which is changing the crypto scene. Analysts believe that cryptocurrencies could soon steal the spotlight as their market share falls to 55.80% and a confirmed sell signal flashes for the first time since 2020. <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” target=”_blank” rel=”nofollow”>The price of bitcoin struggles to maintain its momentum and falls below the important trend line support, this sentiment gains strength.
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Bearish Signals Trigger Peak Season Conjecture
The Relative Strength Index (RSI), which indicates bitcoin dominance, is trading below its midline, reinforcing negative expectations. Historically, these situations have paved the way for what is known as the “alternate season,” a time when others cryptocurrencies shine above bitcoin. Experts maintain that bitcoin capital could flow into altcoins, generating instability and new investment prospects.
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Sell signal just appeared in bitcoin domain for the first time since 2020
Let the real fun of <a target="_blank" href="https://twitter.com/hashtag/ALTSEASON?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ALTSEASON starts pic.twitter.com/R9QeCO69YH
– Mikybull crypto (@MikybullCrypto) <a target="_blank" href="https://twitter.com/MikybullCrypto/status/1863816351090974944?ref_src=twsrc%5Etfw” rel=”nofollow”>December 3, 2024
This trend corresponds to the reduction in holdings among long-term bitcoin investors, so it is not just theoretical. Recent data from IntoTheBlock shows that wallets holding bitcoin for more than 155 days currently only hold around 12.45 million btc, the lowest figure since mid-2022. These balances, which have decreased by almost 10%, indicate that some people are cashing out profits or transferring their money to cold wallets.
bitcoin: Long-term holdings decline
As the planned target of $100,000 for the alpha coin approaches, bitcoin price has run into strong resistance. Multiple failures at $97,500 have led to big declines. bitcoin fell further on Tuesday, selling around $93,940. This volatility is accompanied by a clear decline in long-term assets, making it difficult to know where the market is headed.
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Long-term bitcoin holders are gradually reducing their balances and now hold 12.45 million btc, the lowest level since July 2022.
So far, this decline is less severe than in previous cycles. Long-term holder balances have fallen 9.8% this cycle, compared to 15% in 2021 and 26% in… pic.twitter.com/eA5Cckrgs4
– IntoTheBlock (@intotheblock) <a target="_blank" href="https://twitter.com/intotheblock/status/1863870874643791972?ref_src=twsrc%5Etfw” rel=”nofollow”>December 3, 2024
Although the current decline in holdings is less significant than that of 2021 or 2017, it draws attention to the changing market attitude. Some observers say this behavior shows intentional repositioning by experienced investors trying to adapt to changing market conditions.
Rare bullish signal provides hope amid bearish mood
Even with the negative overtones, a rare bullish hint gives some hope. Recently, in line with the moving averages, the Spent Production Profit Ratio (SOPR) indicates that bitcoin could rally in the next one to two months. These signs are rare, only once or twice during a bull market cycle.
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Although bearish pressure remains evident, experts note that these positive signals offer risk-tolerant investors some good possibilities. Consistent with past patterns following halving events, market watchers are also preparing for a potential decline as January 2025 approaches.
For now, bitcoin's declining dominance and rising volatility highlight the need for a careful but strategic approach. Whether it is a peak season or a new bitcoin surge, the coming months could change the scenario for cryptocurrencies.
Featured image of DALL-E, TradingView chart
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