Since the market crash in early 2018, crypto investors have been waiting for altcoins, digital assets other than Bitcoin (BTC) to rise higher. Unfortunately, this has not happened yet for these investors as Bitcoin’s dominance rose from 33% in 18 months to a high of 71% last year, compounding the deaths of altcoin projects.
However, it seems that a new season of altcoin, best known as the “old season” within the cryptocurrency trading community, is on the horizon.
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Crypto assets could rise soon
An interesting trend has emerged in the cryptocurrency market over the past few weeks: while Bitcoin has risen over 30% from the local low of $ 6,800, Altcoins have overtaken the market leader, with some crypto assets gaining over 100% in the same amount of time, BTC soaring to $ 9,000.
For example, Bitcoin Satoshi Vision rose nearly 300% in a week on news that leading cryptocurrency self-proclaimed creator Craig S. Wright may have access to a large supply of BTC.
As a result, BTC dominance – the percentage of the total value of the cryptocurrency market that the leader makes up – has decreased by 2 to 3% in a short period of time.
But according to Michael Van De Poppe, trader on the Amsterdam Stock Exchange and well-known crypto analyst, altcoins will rise dozens of percent higher if this one important thing happens:
According to its historical analysis of the BTC dominance metric, if that figure falls below 67%, there will be a breakdown in dominance to 7%, which is possible due to recent price movements and a declining divergence.
$ BTC #BITCOIN
Dominance chart. A lower high was reached again here, which probably ushered in a high after a bearish divergence.
A collapse below 67% and 60% is the next target -> initiate altcoin movements.
Similar to January ’16 when the general rally in $ BTC dominance ended. pic.twitter.com/6DW0WwSMJv
– Crypto Michaël (@CryptoMichNL) January 16, 2020
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Bearish Long-Term Outlook for Alts; Bullish long-term outlook for Bitcoin
Although, as mentioned, altcoins may experience some love in the short term, the long-term outlook for this class of crypto-asset seems decidedly pessimistic.
According to previous reports from this point of sale, a Reddit user found that by diversifying a $ 1,000 portfolio into the top 10 crypto assets (Bitcoin, Ethereum, XRP, etc.), their portfolio increased with 10% for every coin in rose by 1.7% over a full year.
Over the same period, Bitcoin itself gained 95% and traditional asset classes gained dozens of percent and posted near-record gains. The idea here: Should history repeat itself in the long run, BTC is the best long-term crypto-related investment.
Not to mention the analyst Ceteris Paribus recently noted that the CME’s introduction of bitcoin options for altcoins could be bearish: “If it’s not obvious the more products like this are on offer, the more bearish it is to the majority the alts, “they wrote.
If it’s not obvious the more products like this are on offer, the more pessimistic it is for the majority of alts. https://t.co/1e7xL1kZK3
– All things are the same (@ otherspar1bus) January 12, 2020
And to top the Bitcoin primacy cake, Willy Woo of Adaptive Capital found late last year that only the 40 top crypto assets listed by volume on CoinMarketCap offer investors enough liquidity to be considered “good investments”.
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