The creators of cryptanalytic company Glassnode are warning that altcoins may lose all bullish momentum after last week’s market correction.
Jan Happel and Jan Allemann, who go by the handle Negentropic on social media platform X, are telling their 63,400 followers that the “altcoin season,” which they say began at the end of November, could come to an abrupt end after altcoins witnessed a deep rollback compared to last year. the last seven days.
Traders and investors will likely be risk-averse on altcoins unless Bitcoin re-establishes a key psychological price point, according to the Glassnode co-founders.
“Is this the end of altcoin season?
Bitcoin’s dominance is rising after falling below $100,000, while altcoins are losing critical support. Dominance increased and resumed its uptrend, signaling an improving situation for BTC.
If BTC stabilizes above $100.00, we could see altcoins pumping into accumulation zones now. Until then, Bitcoin appears poised to lead, leaving altcoins to lag behind.”
The Bitcoin Dominance (BTC.D) chart tracks how much of the total cryptocurrency market capitalization is owned by BTC. In the current state of the market, the rising BTC.D suggests that altcoins are losing value faster than Bitcoin.
At the time of writing, BTC.D is hovering at 59%.
Looking at Bitcoin itself, Glassnode executives say long-term Bitcoin holders are dumping their holdings in droves while other groups of investors are picking up the slack.
“The board continues to change.
As BTC continues to exit exchanges during this downturn, long-term holders are actively exiting while short-term holders are jumping in without hesitation.
Whales are quietly piling up, miners remain neutral, and selling pressure has simply shuffled the board of directors.
New hands are eating up sales.”
At the time of writing, Bitcoin is worth $97,246.
Generated image: DALLE3
