Altcoins are at risk of losing bullish momentum in the aftermath of a recent market correction, warn the co-founders of the crypto analytics firm Glassnode. Jan Happel and Yann Allemann, who operate under the pseudonym Negentropic on the social media platform X, caution their 63,400 followers that the "altcoin season" that began in late November may quickly dissipate following significant pullbacks in the last week.
The Glassnode co-founders suggest that investors may adopt a more cautious stance towards altcoins unless Bitcoin surpasses a crucial psychological threshold. "Is This the End of Altcoin Season?" they ask, noting that Bitcoin dominance is once again rising after briefly dipping and altcoins struggle to maintain essential support levels. A resurgence in Bitcoin's dominance indicates a stronger environment for BTC.
Should Bitcoin stabilize above $100,000, altcoins, currently in accumulation zones, might experience a surge. For now, however, Bitcoin seems set to lead, leaving altcoins trailing.
The Bitcoin Dominance (BTC.D) chart measures the proportion of the total crypto market cap held by Bitcoin, and its current rise suggests a faster depreciation of altcoins relative to Bitcoin. At present, BTC.D holds steady at 59%.
Regarding Bitcoin itself, Glassnode executives point out that long-term holders are significantly reducing their positions, while other investor groups fill the void. "The Board Keeps Shifting," they note. Amidst the current downturn, BTC is exiting exchanges as long-term holders depart, and short-term holders quickly step in. Whales are accumulating discreetly, miners remain detached, and the selling pressure has simply rearranged the playing field, with new investors absorbing the market's sales.
Currently, Bitcoin stands at $97,246. Be informed and subscribe for email alerts for timely updates.