- Bitcoin has taken center stage in crypto’s 2023 rally.
- Notable crypto community members believe it is time for altcoins to shine as Bitcoin’s dominance falls.
- Crypto analyst “Duo Nine” has called for caution.
The crypto markets have fared quite well in 2023, with Bitcoin (BTC) largely leading the way. However, several crypto community members now believe it is time for altcoins to take center stage as Bitcoin’s market cap dominance slides, typically giving way to increased capital inflows to alternative crypto projects.
Bitcoin Dominance Slips to 47%
Last week, Bitcoin’s market cap dominance faced rejection at the top of a multi-year weekly range, dropping from about 48.86% to 47.04% at the time of writing, per data from TradingView.
1-Week Candle Chart for BTC Market Cap Dominance. Source: TradingView
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The drop has led several notable crypto community members to speculate that altcoins are set to print huge gains. As a result, the hashtag #AltcoinSeason has been trending on Twitter since the weekend. Users are excited by the prospect of a significant altcoin rally and have taken to the platform to promote their favorite crypto projects.
Source: Twitter
A price surge among popular altcoins in the last 24 hours has also fueled speculation. BNB, SOL, and AVAX are up 3.72%, 3.68%, and 6.39%, respectively, in the last 24 hours, per CoinMarketCap data.
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Nonetheless, not all market watchers are optimistic.
“Check Bitcoin”
Amid the social media hype, prominent crypto analyst “Duo Nine” has urged crypto community members to factor in Bitcoin’s price action before calling the next altcoin season.
In a tweet on April 17, Duo Nine opined that he was skeptical of a significant rally in altcoin prices until Bitcoin finds support in its latest price correction. He warned that a break below the $28k price point could serve to reverse recent altcoin gains quickly.
At the time of writing, Bitcoin is trading for $29,899.10 on mainstream exchanges per CoinMarketCap data, representing a 1.61% decrease over the last 24 hours. Duo Nine’s analysis suggests that Bitcoin’s price could easily retrace as far as $25k should it fail to find support at $28k. The analyst further emphasized that, regardless of Bitcoin’s dominance, the crypto markets have historically moved in tandem with Bitcoin’s price.
Ali Martinez, another prominent crypto analyst, has suggested that Bitcoin could find support at around the $29,330 mark, as 700k addresses bought 390k BTC within the $29,330-$30,200 price range. In the April 16 tweet, Martinez asserted that the next support lies in the $27,600-$28,450 price range. While the analyst previously predicted that Bitcoin is on course to $34k, he underlined that the leading digital asset would face resistance at the $30,270-$32,150 range.
On the Flipside
- Though Bitcoin’s dominance can be a good indicator of investor sentiment, several other factors impact the prices of crypto assets.
- The last Altcoin Season speculation in April 2022 was quickly followed by a bear market cycle.
Why You Should Care
Bitcoin’s dominance has been on the rise since November. The rise of the metric typically indicates increased interest in Bitcoin compared to altcoins. Conversely, a decrease can indicate increased capital inflows to altcoins and impending price rallies.
To learn more about Bitcoin’s recent price action, read this:
Bitcoin Surges Back Above $30K Following Positive CPI Data
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