According to a crypto analyst, recent volatility in Bitcoin's dominance may very well be a signal that altcoin season is approaching prior to many traders expect.
“The reason it is best to believe in altcoin price motion is since the BTC dominance chart looks bearish and has for a lot of weeks,” said crypto analyst Matthew Hyland in an X post on Friday.
“It's favorable to proceed the downtrend; subsequently, this recovery rally was a dead bounce in a downtrend,” Hyland said. In a separate video on Saturday, Hyland said the recent volatility in the value of Bitcoin (BTC) could have been orchestrated by traditional financial giants.
“For the last month, I've simply expressed the view that lots of this was actually just manipulations that were essentially designed to govern Wall Street,” he claimed.
Bitcoin dominance has fallen by 5% since May
According to TradingView, Bitcoin dominance, which measures Bitcoin's overall market share, has declined by 5.13% over the past 6 months and stands at 59.90% on the time of publication.
Bitcoin dominance has fallen by 5.05% within the last six months. Source: Trading View
Just on November 4, Bitcoin fell below the $100,000 price mark for the primary time in 4 months, sparking broader market fears about how the asset's price will move next.
According to CoinMarketCap, Bitcoin is trading at $102,090 on the time of publication.
However, while Hyland speculates that the altcoin market could soon gain momentum, other indicators proceed to point to a market focused on Bitcoin.
CoinMarketCap’s Altcoin Season Index is currently at 28 out of 100, well inside “Bitcoin Season” territory.
Altcoin season may differ from previous cycles
The last time the indicator signaled “altcoin season” was on October 8, just days after Bitcoin hit a brand new all-time high of $125,100, as traders appeared to anticipate capital rotation higher up the danger curve.
However, after the October 10 market crash that worn out around $19 billion price of leveraged positions from the crypto market, the indicator quickly fell into risk-off mode.
Some cryptocurrency managers expect the following altcoin season to be more selective and concentrated than previous market cycles.
Maen Ftouni, CEO of CoinQuant, an organization that makes algorithmic trading tools, recently said that older cryptocurrencies which have or are expected to receive an exchange-traded fund (ETF) will absorb much of the capital deployed in the following altcoin season.
“Not each coin will produce huge returns; liquidity can be concentrated in certain places, including dinosaurs in fact,” Ftouni said.
