Bitcoin and cryptocurrency markets are down today, but BTC dominance is on the rise. This combination portends bad news for altcoins and any hopes for a soon altseason.
Bitcoin dominance returned to a two-year high over the weekend. The metric, which measures bitcoin’s market share compared to every other crypto asset, reached 48.77% on April 30, according to Tradingview.
Moreover, it came in just under 49% on April 12 but fell back shortly after spurring “alternate season” speculation.
Bitcoin dominance is eating altcoins
The consolidation of Bitcoin’s dominance suggests that those hopes for an altcoin revival may have been premature.
However, the metric took a slight hit today as Bitcoin prices fell again.
Since the beginning of the year, Bitcoin’s dominance has increased by about 15%. It currently sits at 48.29% after rising 2.2% over the past week.
On May 1, cryptocurrency trader ‘DrProfitCrypto’ urged caution regarding altcoins following the rise in BTC dominance.
He noted that the Weekly Dominance candle closed above the resistance level, adding, “This should be the first warning sign.”
“If the dominance that rose today continues to pump, and BTC decides to dump it. You can prepare for altcoin season in another way, a carnage like we’ve never seen before.”
The trader and analyst also suggested some scenarios that would be bad for altcoins. These are gains for BTC dominance, price and market share gains but a price drop. This appears to be the current situation.
Altcoins are only likely to benefit if BTC prices rise but dominance decreases.
On May 1, cryptocurrency trader SatoshiFlipper He said That bitcoin bears can strengthen. He noted that BTC price had been hovering around $28,000 for more than a month, and failed to break the resistance above $30,000.
“Until 30,000 are supported, there is nothing to get Bitcoin bulls emotionally excited.”
At the time of writing, BTC was trading up 2.4% on the day at $28,529, according to data from BeInCrypto Markets.
Greed still abounds
However, the Bitcoin Fear and Greed Indicator is still blinking green Signal at 63. Sentiment for the asset remains positive although it is down nearly 8% from its 2023 high in mid-April.
Satoshi Flipper went to comment On the memecoin frenzy suggesting that it was a signal that the rally had peaked.
“When you start pumping out meme coins, it’s usually a strong signal. Just hope BTC is at least $40k before half of this place starts losing their minds over pepes & bobs.”
Cryptocurrency markets are down 1.8% on the same day at the time of writing.
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