Analysis of Bitcoin’s Dominance shows that BTC bets are likely to outperform the wider market in Q3 2024.
- Bitcoin has been in a slump since April. The Tether and BTC dominance charts pointed toward a bullish future for crypto’s top dog.
Bitcoin [BTC] was trading at $62.5k at press time, with the New York session just a few hours away. Though cryptos trade 24/7, the New York session on Mondays often marks a trend reversal or continuation.
AMBCrypto’s analysis of the Bitcoin dominance gave clues about where the broader market could be headed next.
Combining it with the Tether dominance showed that altcoin bulls might face some complications in the coming weeks.
Bitcoin Dominance shows a verdict
Source: BlockchainCentre
In June, the altcoin season index scores were around 25, signaling a strong Bitcoin season. Over the past two weeks, this trend has begun to reverse. The index jumped as high as 46 on the 12th of July but fell to 35.
This indicated an altcoin season might be around the corner, but other metrics disagreed.
Source: BTC.D on TradingView
AMBCrypto’s look at the Bitcoin dominance chart on the daily timeframe showed a range formation between 54% and 56.4%. Over the past month, the metric has been below the mid-range level.
The implication was that, like the prices, the dominance chart also lacked a strong trend. It showed that the altcoin market has suffered alongside Bitcoin.
The higher timeframes showed that the BTC.D was trending higher. This was a sign that BTC bets are likely to outperform the wider market in Q3 2024.
Why Bitcoin will be in the limelight
Source: USDT.D on TradingView
Bitcoin is the king of crypto coins and is the primary wind vane for understanding market sentiment.
A large inflow of capital into BTC is required before it can be rotated into altcoins, leading to the fabled altcoin season.
The Tether dominance chart saw a retracement while BTC prices rose over the past three days. This suggested a market-wide price rally over the weekend.
However, the USDT.D is expected to resume its downtrend after this bounce, which could be great news for Bitcoin prices.
Source: CryptoQuant
The Puell Multiple is a measure of how profitable mining pools are compared to the previous year. At press time, the metric was at 0.72. A reading of 0.5 or lower would be a strong buy signal.
This was another sign that price appreciation is in store for Bitcoin in the coming months.
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