Bitcoin is sucking up the volume from the entire cryptocurrency market as it continues to rally.
On Oct. 30, researchers at Santiment pinpointed the growing volume and dominance of Bitcoin, while Chainlink, Ether and Binance Coin struggled.
At least in the foreseeable future, traders believe the so-called "Altseason" is not returning, especially as Bitcoin outperforms altcoins.
Historically, during bull markets, the cryptocurrency market saw Bitcoin experience a rapid uptrend first.
Traders foresee a similar pattern playing out in the current price cycle, generally expecting altcoins to recover in 2021.
Since Sept. 13 lows, the Bitcoin dominance index has increased from 56% to 63.4%, recording a 7.4% increase within two months.
When Bitcoin rises quickly, altcoins fall as capital cycles back into BTC. If BTC drops, then altcoins drop in tandem, putting altcoins in a precarious position.
"Let's be honest: There are alts that look really bad, alts that look decent, and alts that look good. I don't see any altcoin that looks really good right now. Choose wisely."The key is for the Bitcoin rally to cool down.
As long as the price of Bitcoin continues to surge rapidly and Ether lags behind, an altseason is highly unlikely in the near term.
A strong sign of an altseason would be a consolidation of the ongoing Bitcoin rally followed by a breakout in the price of ETH. Considering that BTC/USD broke out of the $13,000 resistance level merely a week ago, technically, an Ether and altcoin market uptrend could still potentially be several months out.
Why Bitcoin price and volume rising together is bad news for Ethereum, altseason
Published on Oct 31, 2020
by Cointele | Published on Coinage
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