Altcoins Poised For December Gains As Bitcoin Loses Ground: Analyst

Christian Encila

Last Updated: December 2, 2024 8:00 pm

3 mins read

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Although Bitcoin remains the world’s top digital asset, its price oscillating between $90k and $96k this week, some experts are looking ahead and beyond Bitcoin.

According to some crypto commentators over Twitter/X, Bitcoin’s market dominance is dipping, which means that altcoin season is about to start. In a post by MikyBull Crypto, Bitcoin’s market dominance falls below its two-year support line, creating plenty of opportunities for holders and traders.

According to TradingView, Bitcoin’s current dominance is 56.67%, from last week’s 57%, breaking through its support level for two years. Analysts say that the continuous dip in Bitcoin’s dominance will impact the general crypto market this December and onwards.

On-chain and market data suggest that altcoins are poised for a market run, with MikyBull Crypto saying that its season started November 30th.

Wow, Bitcoin dominance has just broken down the 2-year support.

We are indeed officially in #ALTSEASON folks! https://t.co/IYfQF7P7XI pic.twitter.com/fVysBYuOKn

— Mikybull 🐂Crypto (@MikybullCrypto) November 30, 2024

A Look At Bitcoin Market Dominance

In crypto, analysts and market participants use a variety of metrics to assess Bitcoin’s performance. Bitcoin dominance is one reliable metric used to determine the relative market share of the asset in the crypto sector. The higher the percentage share of BTC, the better it is for holders and investors.

However, Bitcoin’s dominance score has been dipping in recent weeks. As of December 2nd, it is at 55.3%, compared to 58.9% last month. According to MikyBull Crypto, Bitcoin has dipped below its two-year support.

A declining Bitcoin dominance offers insights into the traders’ and investors’ strategies. One takeaway is that investors are reallocating their cash to other digital assets. Many analysts say that some of these investors are reallocating funds to altcoins, like XRP, which is now surging.

Analysts say investors are potentially diversifying their funds and looking at other high-growth coin alternatives.

Bitcoin market cap currently at $1.89 trillion. Chart: TradingView.com

Analysts And Crypto Commentators Offer Differing Insights

A few altcoins are currently leading the market surge. Ether is experiencing a spike in price and increased demand for leveraged ETH exchange-traded funds. On-chain data shows the product experienced a 160% increase in demand immediately after the November 5th US elections. Analysts remain bullish on ETH, and many expect the asset to hit $4k soon. Then, there’s XRP, which trades above the $2 level.

Pav Hundal of Swyftx offers a conservative opinion, saying that Bitcoin’s dominance score may still hit 65%, 67%, or even 70% before it declines. He argues that complex factors make it impossible to pick the right date for altcoin’s surge or Bitcoin’s decline.

BTC price down in the last 24 hours. Source: Coingecko

Not All Analysts See An Altcoin Surge Soon

Meanwhile, not all crypto commentators agree that altcoins’ surge will come in days. Ki Young Ju of CryptoQuant advises caution on times like this. The CryptoQuant CEO remains bullish on Bitcoin, adding that there’s still institutional support for Bitcoin, and it’s unlikely that they will refocus on speculative assets.

The CEO added that for altcoins to reach all-time high market caps, these assets need a considerable capital inflow to cryptocurrency exchanges. He said that altcoins must develop strategies to earn capital instead of relying on Bitcoin’s lack of momentum.

Featured image from Finimize, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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