According to Glassnode founders Jan Happel and Yann Allemann, two critical conditions must be met for an altcoin rally to materialize before the year’s end. If these conditions are fulfilled, altcoins may outpace Bitcoin’s performance. Additionally, the team highlights pivotal signals on the Bitcoin Dominance (BTC.D) chart that could herald the rise of altcoins.
Bitcoin Dominance Declines: An Opportunity for Altcoins
Glassnode’s latest analysis reveals that Bitcoin Dominance (BTC.D) is breaking its upward trend, potentially paving the way for an altcoin rally. BTC.D measures Bitcoin’s share of the total cryptocurrency market capitalization. Currently at 56.94%, BTC.D is hovering below its trendline, signaling an opportunity for altcoins to gain momentum.
Analysts emphasize that for altcoins to rally, Bitcoin must consolidate above the $100,000 mark. This stability would create an environment conducive to altcoin growth, allowing them to gather strength and break out. The second half of December, particularly the year-end period, is identified as a potential turning point for these movements. Investors are advised to closely monitor the market during this phase.
Long-Term Bitcoin Holders Reduce Selling Pressure
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The inability of Bitcoin to sustain a significant leap beyond $100,000 has been partially attributed to selling pressure from long-term holders. These holders, who typically retain Bitcoin for 155 days or more, have contributed to the outflows seen throughout 2024.
However, the available supply of Bitcoin for long-term holders to sell is dwindling, suggesting a potential market equilibrium. Glassnode predicts that this selling pressure will ease in early 2025, signaling the start of a new Bitcoin uptrend. This development could have a ripple effect, benefiting the broader altcoin market as well.
Year-End Hopes for an Altcoin Rally Surge
For an altcoin rally to take shape, Bitcoin’s stability at key levels is essential. A fresh upward trend in the market could allow altcoins to outperform and deliver stronger returns. As Glassnode analysts put it, “The year-end rally could be a game-changer for the altcoin market.” However, Bitcoin’s performance during this time remains a critical factor.
Looking ahead to 2025, the overall market outlook holds exciting potential for investors. Both the possibility of altcoin surges and Bitcoin’s steady performance could trigger a market-wide rally. Yet, given the inherent volatility of the crypto space, caution remains imperative for investors.
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