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Analysts from the cryptocurrency industry state that January could herald a new altcoin season, supported by important market indicators.
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The relative performance of Bitcoin (BTC) against altcoins, especially when assessed through BTC dominance and the ETH/BTC ratio, suggests that favorable conditions for alternative cryptocurrencies will soon return.
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As noted by blockchain analysis firm SwissBlock, “Bitcoin’s dominance is weakening and ETH/BTC has formed a higher bottom, signaling a possible bottom.”
Analysts predict that Bitcoin’s declining dominance could present an opportunity for alternative cryptocurrencies to recover.
Potential Altcoin Market Revival Amid Bitcoin Dominance Trends
The idea of an upcoming season of altcoins is attracting attention, with the impression that Bitcoin’s dominance is headed for a potential decline. Crypto analyst TechDev 52 states that this trend could emerge in January and pave the way for altcoins to regain value. HE, “History tells us that the candle that starts tomorrow is for altcoins.” he says.
Covering a six-month period, the chart shows significant interaction with long-term trendline resistance for BTC Dominance (BTC.D). A bounce at this resistance level could see a significant decline in BTC’s dominance and give altcoins a chance to recover.
ETH/BTC ratio as a barometer of altcoin performance
Along with the metric of Bitcoin dominance, the ETH/BTC ratio offers critical information about the altcoin ecosystem. This ratio not only reflects the price of Ethereum relative to Bitcoin, but also serves as an important indicator of altcoin health, especially considering Ethereum’s position as the leading altcoin. Namely, market analysis company SwissBlock stated that the ETH/BTC ratio is close to reaching its lowest stage. Them, “Is this altcoins’ time to shine, at least for a while?” They commented:
Although the overall market pulled back, some altcoins showed significant gains. Virtual Protocol (VIRTUAL) rose approximately 30% to $4, while Gate Token (GT) and FTX Token (FTT) gained approximately 18%. However, the overall altcoin market remains limited, with the seasonal altcoin index hovering around neutral levels, indicating a delicate balance between potential recovery and further stagnation.
Additionally, a clear trend has emerged where more investors are showing optimism towards ETH, looking to buy more of BTC. This signals growing optimism towards Ethereum and potentially the broader altcoin market.
Conclusion
Indicators point to a promising bottom for the altcoin market, with BTC’s dominance decreasing and the ETH/BTC ratio suggesting a healthy position for Ethereum. As January progresses, traditional patterns seen in the cryptocurrency market may help altcoins revive. It is very important for investors to pay attention to these metrics; As changes in dominance could pave the way for a strong altcoin season in the coming weeks.
