A weakening Bitcoin presence could give altcoins the moonshot they have waited for three years.
Bitcoin (BTC) revisited recent lows near $52,000 on Thursday as sustained weakness continued for the largest cryptocurrency.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Traders await altcoin “magic”
Cointelegraph Markets Pro and TradingView revealed a lackluster day for BTC traders as BTC/USD briefly dipped below $53,000 before stabilizing around $1,000 higher.
The move came as Bitcoin was about to lose its market cap dominance supremacy to altcoins in what traditionally marks the “real” start of the “alt season.”
Charts from on-chain monitoring resource CoinMarketCap showed that as of Thursday, Bitcoin’s share of the overall cryptocurrency market capitalization stood at just 50.1%.
Having decreased sharply this year despite its own price gains, Bitcoin’s market cap share versus altcoins looked set to break through support, which has held for over three years.
Looking at historical behavior, each time Bitcoin loses the 50% mark, altcoins rapidly move in to pick up the slack, often led by Ether (ETH).
The reshuffling thus sparks an altcoin run that truly fits the description of an “alt season” — rapid gains to a peak followed by a cooling-off period as Bitcoin regains some lost ground. This was the case in both mid-2017 and early 2018.
Cryptocurrency market cap share chart. Source: CoinMarketCap
Should history repeat itself, it would be music to the ears of altcoin investors, many of whom have long claimed that an “alt season” is already underway but has yet to show its true colors.
A race to the top this time around could surprise even them, meanwhile, as many altcoins have already put in unbelievable performances in 2021.
“BTC dominance 51.6%. The magic starts when 50% breaks,” popular Twitter account CryptoBull summarized last week.
Market breaks Dogecoin’s spell
At the time of writing, Ether in particular was showing no signs of weakness in the face of fresh wobbles for BTC/USD, gaining 6% in 24 hours to approach $2,500 once again.
Others were less optimistic, with the top 50 cryptocurrencies mostly down on the day.
Dogecoin (DOGE), previously the star of the show, continued its slip after hitting all-time highs of $0.44 on some exchanges. DOGE/USD was already down 40% versus the high on Thursday.
DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?