- Cas Abbé sees Bitcoin in the complacency phase, signaling a shift toward altcoin gains.
- Market indicators suggest Bitcoin dominance may decline, while altcoins show renewed strength.
- An analyst compares the altcoin cycle to early 2021, hinting at a potential major rally ahead.
Bitcoin’s price has exhibited extreme volatility over the past week, with rapid fluctuations shaping market sentiment. Following the inauguration of Donald Trump, which did not include any mention of crypto, Bitcoin faced a setback but managed to hold the crucial $100,000 threshold. Throughout the week, the asset remained above six figures and climbed to $107,000 by Sunday.
However, the new week brought renewed turbulence. Bitcoin’s value slipped below $100,000, reaching a multi-week low beneath $98,000. This drop triggered significant liquidations across the market. However, at the time of this writing, Bitcoin was trading at $102,622, reflecting a 4.34% increase over the last 24 hours and a marginal 0.04% gain over the past seven days.
A Leg Up for Altcoins Next?
Amid this volatility, Web3 Growth Manager and Binance Creator of the Year Award Winner, Cas Abbé, noted on X that Bitcoin dominance appears to be in the complacency phase. This stage, as illustrated in the Wall Street Cheat Sheet, represents a moment when investors believe the recent downturn is a temporary correction before another surge.
Notably, Abbé expects Bitcoin to push above its 2024 highs. However, he now suggests that this scenario seems increasingly unlikely. He believes the next major leg up in the crypto market could be driven more by altcoins rather than Bitcoin itself.
Market Indicators For BTC.D
Bitcoin dominance, measured by BTC.D on TradingView, suggests that investors still expect Bitcoin to maintain strength. However, if the market is truly in the complacency phase, this could indicate a false sense of security before a deeper correction occurs. Technical indicators are offering mixed signals at this moment.
The MACD (Moving Average Convergence Divergence) line has recently crossed above the signal line, which is often considered a bullish indicator. However, previous peaks have similarly shown these crossovers before Bitcoin dominance declined, raising the possibility that the current rebound might be fleeting rather than the beginning of a sustained rally.
On the other hand, the Relative Strength Index (RSI) is currently at 60.88, nearing overbought levels. A steady climb in RSI could indicate growing market confidence. Yet, if a bearish divergence forms—where prices soar to new highs while the RSI fails to follow—this might signal weakening momentum, potentially aligning with a shift from the complacency phase to investor anxiety.
Altcoins’ Rally and Market Sentiment
Despite the recent market crash on Monday morning, altcoins are experiencing a resurgence, with many assets posting significant gains. XRP leads this charge with a 13% surge to reach $3.12, while other notable altcoins including Dogecoin, Cardano, Chainlink, Stellar, Sui, and Shiba Inu have also recorded gains up to 7%.
Ethereum has approached $3,200 again, while Solana hovers near $240, and Binance Coin has reached $675. Among the top gainers, JUP has risen by 19%, XDC by 22%, and HYPE by 14%, contributing to an overall crypto market capitalization increase of $140 billion, now reaching $3.65 trillion.
Amid this altcoin revival, a market analyst has drawn parallels between the current cycle and early 2021. Analyst Moustache noted that the current conditions closely resemble those seen in January 2021, a period that preceded one of the largest altcoin rallies in history. He highlights that explosive growth in the altcoin sector typically kicks off in February, March, and April, suggesting we may be on the cusp of a similar event.
Further, analyst CryptoELlTES opines that Bitcoin dominance is set to decline soon. He points out that the current market conditions are ripe for an altcoin surge, with some assets potentially yielding returns of 25x to 50x.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any individuals mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please conduct your research prior to making any financial decisions.
