- The total value of altcoins surges above 2022 resistance.
- Market sentiment moves into greed territory.
- Bitcoin Dominance falls.
Cryptocurrency markets are known for their boom and bust cycles, with long bear markets inevitably giving way to euphoric bull runs. After a prolonged crypto winter, Bitcoin’s recent move above $38,000 has led many to declare the next bull market is underway at last.
With the leading cryptocurrency showing strength, attention now turns to altcoins and whether they will enjoy a similar change in fortunes. Amid the past month of rising token prices, the altcoin market cap recently broke above the 2022 resistance level, renewing confidence that continued price rises lie ahead.
Altcoin Market Cap Surges
Over the past month, the altcoin market cap has surged above the 2022 resistance level, following $350 billion of inflows. The flood of inflows contributed to taking the total value of altcoins above $160 billion for the first time since July 2022, as noted by the Twitter account Rekt Capital. Rekt Capital expects a retest of this resistance level, leading to a bounce that will turn resistance into support.
Although Monday saw a sell-off, in line with Rekt Capital’s prediction of a re-test, market sentiment remains buoyant. After approximately four months stuck in fear, the Crypto Fear & Greed Index moved into greed territory on October 19, with crypto market sentiment falling just short of extreme greed on November 6, at a reading of 74.
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This swift reversal in market sentiment is accompanied by falling Bitcoin dominance, suggesting that the appetite for higher-risk altcoins over the relatively stable Bitcoin has returned.
Bitcoin Dominance Wanes
The rising tide of altcoins has led to a marked decline in Bitcoin’s market dominance. After hitting a year-to-date peak of 54.3% on October 25, Bitcoin Dominance has fallen below 52%, with signs of the downtrend continuing.
Bitcoin Dominance refers to Bitcoin’s share of the total cryptocurrency market cap. As investors move capital out of Bitcoin into altcoins, Bitcoin Dominance falls allowing altcoins to gain market share.
On the Flipside
- Factors like inflation and geopolitical tensions remain, suggesting investors increasingly view crypto as a safe haven amid macroeconomic uncertainty.
- The 7-day performance of leading altcoins saw huge gains for Solana, Avalanche, and Polygon, up 38%, 34.8%, and 23% respectively.
Why This Matters
A resurgence in altcoins suggests the crypto bull market is gearing up for takeoff. However, a sustained four-week period of capital inflows in crypto markets is insufficient to officially call the start of the bull run, particularly as macroeconomic factors continue to weigh heavily on global markets.
Discover the top-performing altcoins as the markets turn bullish here:
5 Altcoins That Dominated the Top 50 Cryptos this Week
Find out about THORChain’s remarkable rise in trading volume here:Â
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