The post Is the Altcoin party over? Bitcoin dominance threatens alt sector! appeared on BitcoinEthereumNews.com.

Positioning for altcoins? These bearish signals call for caution.  The altcoin season index slipped below 50%, marking a new monthly low.  Altcoins are in massive discounts after the recent market sell-off following Bitcoin’s [BTC] correction.  These discounts have seen some analysts call for ‘buying the dip.’ But on-chain analyst and Alphractal founder, Joao Wedson, has sounded a warning to altcoin traders. He said,  “The best strategy is to stay in Stablecoins, not BTC or any Altcoins. The recent performance and dominance trends aren’t favorable. The ideal exit was when BTC was above $106k —time to exit everything!” Source: Alphractal Wedson cited an uptick in Bitcoin vs altcoin positioning which meant more capital flowed from altcoins to BTC and stablecoins.  Is it time to buy altcoins? According to Wedson, BTC dominance marked a bottom above 54% and could strengthen for the next few weeks and months. He projected the scenario as ‘terrible for altcoins.’  He added that the altcoin scenario was even worsened by the BTC dominance 90-day change turning positive for the first since the wild altcoin rally in November.  Source: Alphractal In short, the altcoin sector might not strongly rebound from the recent correction. Most of the top and mid-cap altcoins were down 10%-30% in the past week.  Ripple [XRP] and Cardano [ADA] saw massive dumps amongst top altcoins. XRP was down nearly 10% but stayed above $2. On the contrary, ADA shed 18% and slipped below $1 over the same period.  Interestingly, Ethereum [ETH] held the dump much better. It dropped only 6% but defended $3.5K as support. However, other outliers like Hyperliquid [HYPE] and Pudgy Penguins [PENGU] rallied 40% and 425%.  That said, the overall altcoin sector performance slowed even further with the Altcoin Season Index dropping to a monthly low of 50%.  Source: Blockchain Center Will…

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Filed under: News - @ December 22, 2024 11:10 am