Monitoring Bitcoin's Influence and Strategies for Investors to Adapt
B ki ding O ff a T he S b i t C o n t a i n S e a s o n
Kick back and dig into this intriguing piece that decodes the current state of the altcoin market, and whether we're steering towards an altcoin season.
BTC, currently priced at $104.9k, has been testing a resistance level at $106.2k. Even though the daily structure of BTC seems bullish, a potential rejection and a drop to the $102k support is on the cards.
While BTC has been attempting to reach new highs for the past couple of weeks, the altcoin market hasn't exactly been dancing the samba.
The Altcoin Season Index clocks in at 16, meaning we're deep in Bitcoin season. Remember, the last time the index went above 75 was in early December 2024, but it didn't last long.
Bitcoin Dominance at its mighty best since 2021
Source: BTC.D on TradingView
Bitcoin Dominance, or the share of the total crypto market cap that BTC holds, currently stands at 64.18%. A glimpse at the weekly dominance chart reveals a predominant Bitcoin season since mid-2023.
Over the past month, BTC.D has successfully flipped the 63.8% level to support - a level that had served as support in 2020. This suggests that dominance could continue to rise, with targets now set at 67% and 70%.
Source: ETH/BTC on TradingView
Monitoring the ETH to BTC performance can help gauge the altcoin market's performance. Typically, a boost in ETH values fuels altcoins, leading to an altseason.
According to the ETH/BTC chart, the last altseason was in April-June 2021. The heaviest drop in BTC.D took place in March-May 2021. This alignment hints at the importance of the ETH/BTC chart in predicting altcoin trends.
As of press time, the ETH/BTC chart is on a downtrend. However, a move beyond 0.026 might signal that alts are worth keeping an eye on. Until then, you might want to park your capital in BTC.
Disclaimer: This write-up does not serve as financial, investment, trading, or any other expert advice. It merely represents the writer's opinion.
Gold Rush Coiners Delight! California decides to accept crypto for state payments - Bill moves forward unanimously
Share and tweet your excitement about California's positive step towards cryptocurrency adoption.
California, baby, here we come! The Golden State has taken a bold stride towards embracing the cryptocurrency wave by passing a bill that will allow residents to use cryptocurrencies for state payments, unanimously!
Let the good times roll! 🎉💰
This decision indicates a significant step forward in the mainstream acceptance of digital currencies like Bitcoin (BTC), Ethereum (ETH), and a plethora of altcoins.
Stay tuned as the fine print of this revolutionary bill gets unraveled. 📝💰💻
Insight:
- Bitcoin Dominance refers to the share of the total crypto market cap that BTC owns. High dominance typically means investors prefer the stability and liquidity of Bitcoin over altcoins, making the environment unfavorable for altcoins. Conversely, a drop in Bitcoin dominance often signifies a shift in investor interest towards altcoins, marking the beginning of an altcoin season.
- The ETH/BTC chart can help gauge altcoin market performance. A rising ETH/BTC ratio often precedes broader altcoin rallies. A break above the resistance level on the ETH/BTC chart could indicate renewed interest in altcoins and the onset of an altcoin season.
- Despite the bullish structure in BTC, the altcoin market hasn't been as lively, despite attempts to reach new highs over the past couple of weeks.
- The Altcoin Season Index currently stands at 16, indicating a Bitcoin-dominated market, with the last significant altcoin season occurring in April-June 2021.
- Bitcoin Dominance, which is the share of the total crypto market cap that BTC holds, has reached its highest since 2021, suggesting a strong preference for BTC over altcoins.
- Monitoring the Ethereum to Bitcoin (ETH/BTC) performance can aid in predicting the altcoin market's trends, with a break above the resistance level on the ETH/BTC chart potentially heralding an altcoin season.
- The move by California to accept cryptocurrencies for state payments could mark a significant step towards mainstream crypto adoption, impacting the entire crypto market, including Bitcoin, Ethereum, and numerous altcoins.
