- Altcoin season index fluctuates, rising to 46 in mid-July before falling; suggests Bitcoin’s continued market influence.
- Analysis shows Bitcoin dominance ranging between 54% and 56.4%, reflecting a market without a strong directional trend.
Bitcoin continues to hold sway over altcoins, indicating that a full-blown altcoin season may not be imminent. As we enter the third quarter of 2024, indicators point towards Bitcoin maintaining its dominance, overshadowing the performance of lesser-known cryptocurrencies.
Data from ETHNews’s analysis reveals insights into Bitcoin’s dominance, a metric that helps gauge its market influence relative to altcoins. Recent trends in Tether’s dominance also suggest a forthcoming bullish phase for Bitcoin, complicating the path forward for altcoin traders.
June witnessed the altcoin season index score lingering at a mere 25, underscoring a robust phase for Bitcoin. Although the index briefly rose to 46 by mid-July, it subsequently dropped to 35, dampening hopes for an immediate altcoin rally. This fluctuation indicates a market still heavily influenced by Bitcoin’s performance, despite transient gains among altcoins.
Looking at Bitcoin’s dominance over a range of 54% to 56.4% during the past month shows a market in flux, lacking a definitive directional trend. This pattern is echoed in the broader market’s performance, where altcoins have not managed to decouple from Bitcoin’s trajectory.
The analysis by ETHNews extends to the Tether dominance chart, which, after a minor retracement coinciding with Bitcoin’s price increase over the past few days, is poised to continue its decline. Such movements suggest potential for a market-wide rally, likely to benefit Bitcoin disproportionately.
Furthermore, the Puell Multiple, an indicator measuring the profitability of mining operations against historical averages, currently stands at 0.72. A drop to 0.5 or lower typically signals a strong buying opportunity, hinting at further appreciation in Bitcoin’s value soon.
