1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop
traders await the magic of thealgorithm
Cointelegraph Markets Pro and Tradingview revealed a bad day for BTC traders, with BTC/USD briefly dipping below $53,000 before settling $1,000 higher.
The move came at a time when bitcoin was about to lose its dominant position in the altcoin market, which traditionally marks the real start of the altcoin season.
Charts from monitoring source CoinMarketCap showed that bitcoin’s share of the total cryptocurrency market capitalization was just 50.1% on Thursday.
After bitcoin’s sharp decline this year despite its own gains, it looked like bitcoin’s market share against altcoins would break through a support that had held for more than three years.
A look at historical behavior shows that when bitcoin loses the 50% barrier, altcoins quickly follow, often led by Ether (ETH).
So the permutation unleashes an alt-run that really fits the description of an alt-season – a quick spike followed by a cooling period where bitcoin regains lost ground. This was the case in both mid-2017 and early 2018.
Graph of cryptocurrency market share. Source: CoinMarketCap
If history repeats itself, that would be music to the ears of altcoin investors, many of whom have long claimed that the altcoin season has already begun but has yet to show its true colors.
The race to the top might even surprise them this time, as many violas have already shown incredible performance in 2021.
The predominance of BTC is 51.6%. The magic begins with a 50% breakout, the popular Twitter account CryptoBull summarized last week’s results.
Themarket breaks the spell of theDogecoin
At the time of writing, Ether in particular has shown no signs of weakening in the face of the new BTC/USD swings, rising 6% in 24 hours to approach $2,500 again.
Others were less optimistic, with the top 50 cryptocurrencies mostly down on the day.
Dogecoin (DOGE), formerly the star of the show, continued to decline, reaching all-time highs of $0.44 on some exchanges. DOGE/USD is already down 40% from Thursday’s high.
DOGE/USD 1-hour candlestick chart (Bittrex). Source: View of the shop
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