Bitcoin Dominance Plunged; Is It Right Time To Buy Altcoins

Bitcoin Dominance Drops By 2%; What Next In BTC?

Bitcoin's price is falling, and its dominance is declining, which is a positive sign for altcoins. Crypto expert Dami-Defi shared on X about the possibility of the start of the altcoin season. Additionally, the data analysis platform DUNE also mentioned a buying signal for altcoins, indicating positive signs.

In a recent post, crypto expert Dami-Defi observed that Bitcoin (BTC) is experiencing a decline while altcoins are on the rise. This phenomenon has been seen before and typically indicates a shift in liquidity from Bitcoin to altcoins as Bitcoin dominance decreases. 

Source: X

Dami added over the past 24 hours, BTC dominance has dropped by 2%. Additionally, Total 3, which represents the total market cap of all cryptocurrencies excluding Bitcoin and Ethereum, is maintaining local support and showing signs of a potential reversal. 

With these developments, it's worth considering if the upcoming period will mark the beginning of an altcoin season.

However, some other users raise concerns that it is too early to predict the altcoin season. A user named favoriteluckybanjo commented on the post "It would be very early but on the other hand, the alt projects I’m watching have advanced significantly since launching, $avax and $link being just a few good examples."

An another user said that the altcoin season probably starts in October.

Altcoin Buying Signal; Is it the Right Time to Buy Altcoins

Crypto data platform Dune highlights the altcoin dashboard, which suggests a buying signal for altcoins in a recent X post.

Source: Dune

According to Dune data, this system provides an overall perspective of the market by taking into account various metrics. One way to understand it is by likening it to a TOTAL3/TOTAL oscillator.

TOTAL refers to the total market capitalization of all cryptocurrencies, while TOTAL3 refers to the total market capitalization of cryptocurrencies excluding BTC and ETH. The oscillator, which operates within the range of 0 to 1, functions similarly to RSI (Relative Strength Index) and other similar indicators.

Bitcoin Performance on The Technical Chart

Bitcoin price facing weakness on the daily technical chart breaking below the 50 EMA level. At press time the BTC price was taken support on the 200 EMA level close to the $61,644 mark showing buyers' presence at the lower levels.

This week the bitcoin price dropped by almost 8.22% showcasing bearishness on the daily technical chart. 

Technical indicators like EMA and RSI are also in the bearish zone showcasing negative signals.

Conclusion

The current trends in the cryptocurrency market suggest a pivotal moment for investors. With Bitcoin's dominance waning and altcoins gaining traction, the stage seems set for a potential altcoin season. The 2% drop in BTC dominance and the steady support for Total 3 hint at a shift in investor interest towards alternative cryptocurrencies. 

While some analysts, like Dami-Defi, view this as a buying opportunity, others urge caution, suggesting it may be premature to declare the start of an altcoin season. Ultimately, whether this is the right time to buy altcoins will depend on individual risk appetites and a thorough analysis of market conditions.

Also Read: Bitcoin's Resurgent Dominance in Blockchain Usage