Bitcoin (BTC) Faces Potential Downturn as Altcoins Soar, Analysts Advise Caution
Summary:
Matthew Hyland, a well-known analyst, has expressed caution about Bitcoin's recent market performance, suggesting a potential downturn following the cryptocurrency's robust 60% increase since October. This change happened amidst significant gains in altcoins. The article also states that Bitcoin's share of the total crypto market cap, which hit a high of 55.26% in December, has since dwindled, dropping to 53.4%, potentially ending the crypto bull market. It further highlights that the reduction in Bitcoin's dominance might set the scene for a surge in altcoins, known as 'altseason', with Cardano and Avalanche already showing significant gains.
Predictions of a downturn in Bitcoin's (BTC) recent upward market trend are growing, with analysts now advising caution. This comes as other cryptocurrencies, known as altcoins, are experiencing significant gains. Prominent analyst and social media commentator, Matthew Hyland, has expressed particular concerns about the future stability of BTC's value.
Bitcoin's market strength is under threat, despite it reaching new heights of $44,729 on the Bitstamp platform on December 8. Since then, the value has retreated back below the $44,000 watermark, confining it to fluctuating within a restricted range.
Hyland has spotted signs that may point to the current bull market cooling down, despite a hefty 60% increase since October. The warning arises from Bitcoin's proportion of the total cryptocurrency market cap.
Hyland stated in a social media post that Bitcoin is "rolling over and giving up all its gains," suggesting that if it falls below 51.81%, it will be the first significant decline in over a year and a potential premature end to the bull market.
Bitcoin’s share of the cryptocurrency market peaked at 55.26% in early December — a level not seen since April 2021. A swift reversal in fortunes has seen the upward trend taper off, with the current share sitting at a reduced 53.4%.
Other analysts believe the decrease in Bitcoin’s dominance could set the stage for altcoins to surge — an event known as ‘altseason. It seems this could already be happening. Prominent cryptocurrencies such as Cardano and Avalanche have seen a 22% increase in the last 24 hours.
Ethereum (ETH), the largest altcoin by market cap, is steady, holding a 12% gain over the past week, with Cardano and Avalanche leading the surge, registering increases over 50%.
December has already seen a 2.4% increase in the total altcoin market cap, totaling an 18.4% increase for the month.
The contents of this article should not be viewed as investment or trading recommendations. All investments and trades involve risk, and individuals should therefore carry out extensive research before making any decisions.
Published At
12/9/2023 3:13:24 PM
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