Bitcoin Season: Leading The Charge In The Crypto Market
28 Oktober 2023 - 5:00AM
NEWSBTC
Over the last month, Bitcoin’s price has seen a significant surge.
Its price has increased by 30%, reaching a new yearly high of
$35,000, 10% above its previous peak this year. Interestingly,
while the growth of Bitcoin is clear to see, the broader
cryptocurrency market hasn’t quite managed to keep up. Related
Reading: Bitcoin Price To Reach $170,000 in 2025 – Mathematical
Model Predicts Altcoin Market Cap The Altcoin market cap, which is
the total cryptocurrency market cap excluding Bitcoin, has been
trading within a descending triangle. This pattern, characterized
by its lower highs and equal lows, often indicates a bearish trend
in the market. This pattern suggests sellers are gradually
overtaking buyers. A breakout from such a pattern is typically seen
as a bullish indicator, with the target being the first peak. In
this case, the Altcoin market cap would potentially see another 15%
increase, matching the yearly highs in April. Crypto total market
cap excluding BTC. Source: TOTAL2 on TradingView A similar pattern
was seen in the previous cycle, where the Altcoin market cap was
trading within a descending wedge. After the breakout, the Altcoin
market cap saw an increase of 90%. Such historical trends show the
importance of closely monitoring these patterns as potential
indicators of market shifts. Contrastingly, as the Altcoin market
cap is forming lower highs, Bitcoin’s price is forming new yearly
highs. This dynamic suggests that Bitcoin is gaining market share
from the rest of the crypto market. This is often referred to as
‘Bitcoin Season’. Bitcoin Season Bitcoin’s market share is at 54%,
which is the highest it has been in over two years. The last time
Bitcoin’s market share was at this level was during the bull market
in 2021. As that year progressed, the asset began losing market
share, as investors turned their attention to coins with lower
capitalization, enticed by the prospect of higher returns. Now the
trend seems to be reversing. Investors are gravitating back towards
Bitcoin, lured by its higher returns than the rest of the crypto
market. Bitcoin dominance (market share % in the cryptocurrency
market). Source: BTC.D from TradingView The next resistance is at
58%, so if Bitcoin breaches this mark, it stands to gain an
additional 5% in market share. Historical trends have shown that in
the initial phases of bull markets, Bitcoin often takes charge, as
it pushes on to create new all-time highs. This is typically driven
through Bitcoin-centric narratives such as the halving which
reduces the new supply of Bitcoin being mined. This year,
heightened anticipation surrounds the potential approval of a
Bitcoin ETF. If approved, it could pave the way for a wider range
of investors to engage with the asset. Related Reading: Next
Bitcoin Peak: Why It Could Still Be 2 Years Away Standout Altcoins
Performers Even during the dominant ‘Bitcoin Season’, certain
Altcoins have still managed to show even more impressive returns.
Some notable ones are the following: Injective: +74% Solana: +68%
PEPE: +67% RENDER: +45% Chainlink: +45% Investment Disclaimer: The
content provided in this article is for informational and
educational purposes only. It should not be considered investment
advice. Please consult a financial advisor before making any
investment decisions. Trading and investing involve substantial
financial risk. Past performance is not indicative of future
results. No content on this site is a recommendation or
solicitation to buy or sell securities or cryptocurrencies.
Featured image from ShutterStock, Charts from TradingView.com
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