Bitcoin is rising, and your altcoins are standing still. Where is alt season? 👀
BTC growth by itself does not mean that the entire market will be next. To understand how broadly the move is spreading, it’s useful to look at three indicators:
🔸 BTC dominance
If Bitcoin’s share of the crypto market capitalization increases, altcoins collectively underperform it in terms of momentum. But a drop in dominance also doesn’t guarantee an alt season: it can happen, for example, because stablecoins are gaining market share.
🔸 ETH/BTC pair
Ethereum’s growth in dollars doesn’t yet indicate its strength relative to Bitcoin. If the ETH/BTC pair is falling, ETH is lagging behind BTC. Persistent strengthening of the pair is one of the signs to watch, but it is not a standalone buy signal.
🔸 Trading volumes and breadth of the rally
One thing is a jump in just two or three popular coins. Another is movement across many assets from different sectors, accompanied by rising trading volumes. The second scenario provides more grounds to talk about a broad market revival.
#Bitcoin #Altcoins #MarketAnalysis
BTC growth by itself does not mean that the entire market will be next. To understand how broadly the move is spreading, it’s useful to look at three indicators:
🔸 BTC dominance
If Bitcoin’s share of the crypto market capitalization increases, altcoins collectively underperform it in terms of momentum. But a drop in dominance also doesn’t guarantee an alt season: it can happen, for example, because stablecoins are gaining market share.
🔸 ETH/BTC pair
Ethereum’s growth in dollars doesn’t yet indicate its strength relative to Bitcoin. If the ETH/BTC pair is falling, ETH is lagging behind BTC. Persistent strengthening of the pair is one of the signs to watch, but it is not a standalone buy signal.
🔸 Trading volumes and breadth of the rally
One thing is a jump in just two or three popular coins. Another is movement across many assets from different sectors, accompanied by rising trading volumes. The second scenario provides more grounds to talk about a broad market revival.
#Bitcoin #Altcoins #MarketAnalysis