Bitcoin’s recent massive rally has raised the hopes of altcoin investors expecting that their turn may be around the corner. The hopes however may be dashed for a while, as new data shows Bitcoin is not yet done.
Data shared on 6 September shows the Bitcoin Dominance, a metric that indicates how much of the crypto market share Bitcoin accounts for has turned in favor of the number one digital asset.
Not a long delay
Bitcoin Dominance is a key metric that doesn’t just tell us how much of the market Bitcoin is accounting for, it is also a key indicator when it comes to forecasting the altcoin season.
As Bitcoin Dominance increases, the chances of an altcoin rally keeps reducing, meaning Bitcoin is still in charge. Conversely, a declining dominance means altcoins have a better chance.
According to recent data, this metric is currently playing out in favor of Bitcoin and not altcoins. The good news is that the upside may not last for long, since the indicator lost its macro trend earlier, and will likely drop shortly.
This data is in agreement with other analysts who believe that Bitcoin Dominance may be approaching its cycle top, which will be followed by a downward trend that will give way for altcoins.
A bold analyst has also predicted that the dominance may persist until Bitcoin gets to $180,000 after which it will give way. This is quite an ambitious prediction that implies the top asset has quite a long way to go before slowing down.
If that is the case, altcoin season is delayed for a while, contrary to the opinion that the delay will only be for a short while.
Meanwhile, Bitcoin is still inching higher, safely above $124,000 and may be getting set to touch $125,000 again, after which new prices may come into play.
What do you think?
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