bitcoin (btc), the largest cryptocurrency by market cap, is one of the best-performing digital assets so far in 2024. Despite its recent struggles over the past two quarters, the leading cryptocurrency is up more than 137% over the past year.
bitcoin dominance over ethereum increases by 6% in 2024
According to a recent report by IntoTheBlock, bitcoin has created a growing gap between itself and other digital assets in the market. The blockchain analytics platform x.com/intotheblock/status/1837169185731833966″ target=”_blank” rel=”noopener nofollow”>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 cap, is currently trading at its lowest level against btc. This poor performance of eth has been attributed to the relatively less successful launch of a spot exchange-traded fund (ETF).
bitcoin spot ETFs have accumulated around $18 billion in capital over the past eight months, while eth ETFs have mostly seen net outflows since their launch in late July. This trend can be associated with investors’ preference for btc due to its relative stability.
Ultimately, the introduction of spot ETFs has helped bitcoin assume greater dominance over other assets in the cryptocurrency market. However, a popular cryptocurrency analyst on x has come up with an interesting prediction regarding bitcoin and altcoin dominance in the current cycle.
Altcoin season may have arrived: here's how
Cryptocurrency analyst Ali Martinez took x to x.com/ali_charts/status/1837417127545843967″ target=”_blank” rel=”noopener nofollow”>explain How bitcoin's current dominance might be coming to an end and altcoin season might just be beginning. This analysis is based on the formation of technical patterns on the btc dominance and total market cap charts (excluding the top 10 assets).
According to Martinez, bitcoin dominance could be preparing for a trend reversal due to the formation of an ascending wedge chart pattern on the weekly time frame. Meanwhile, the altcoin market cap seems to be breaking out of a descending wedge pattern on the three-day chart.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/09/Is-the-end-of-Bitcoin39s-dominance-near-Analyst-claims-39altcoin.jpeg" alt="bitcoin” width=”1199″ height=”646″/>
Source: x.com/ali_charts/status/1837417127545843967" target="_blank" rel="noopener nofollow">Ali_charts/x
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For context, a wedge is a technical analysis pattern characterized by converging trend lines on a price chart. A rising wedge, which typically appears in an uptrend, is a bearish signal indicating that price is about to experience a breakout reversal. A falling wedge, on the other hand, typically signals a bullish reversal.
Martinez highlighted in his post that “altcoin season is right around the corner,” especially with the bitcoin dominance chart signaling a possible trend reversal and the altcoin market cap witnessing a bullish breakout.
At the time of writing, the total market capitalization outside of the top 10 assets stands at around $213.814 billion.
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Total market cap (excluding top 10 assets) on the daily timeframe | Source: OTHERS chart on x/60fSMvmd/" target="_blank" rel="noopener nofollow">TradingView
Featured image created with Dall.E, chart by TradingView
