dailyhodl.com
Cryptocurrency analyst and trader Kevin Svenson is highlighting one Bitcoin (BTC) metric that’s flashing a bullish signal for altcoins.
Svenson tells his 78,500 YouTube subscribers that Bitcoin dominance, the ratio of the BTC’s market capitalization relative to the market capitalization of the rest of the crypto assets, suggests that “we might be near altcoin season.”
“Bitcoin dominance beginning to fall below its trend line, which could be a good sign for the altcoins…
…the fact that the Total3, the [total] altcoin market cap, is actually finding support against Bitcoin’s drop today, so this is a sign that sellers in the altcoin market are exhausted and we may start to see altcoin season kick in.”
The cryptocurrency analyst and trader adds,
“If you’re holding altcoins, this is pretty much what you want to see. Because in the crypto market when Bitcoin is falling, a lot of times Bitcoin dominance actually goes up because the altcoins are tumbling with Bitcoin. People want to exit the low-cap speculative altcoins into what they’re more sure of, which is Bitcoin. That happens all the time.
But this time, Bitcoin dominance is falling with Bitcoin. That is a sign that altcoins are gaining more confidence, more speculators, more money is flowing into the altcoins.”
Svenson also says that altcoins are currently in oversold territory.
“The altcoins are actually bullishly diverging against Bitcoin, you could say. What is clear looking at the altcoin market cap is that the sellers are exhausted. They’ve already sold too much and now the altcoins are gaining dominance.”
Generated Image: DALLE3