As we approach the month of June, the cryptocurrency market, including Bitcoin and altcoins, is gearing up for possible price fluctuations. Recent trends have revealed a significant rise in the performance of altcoins when compared to Bitcoin. Altcoins have shown resilience by steadily increasing their market values alongside Bitcoin’s price gains. This pattern has sparked speculation about the potential decline of Bitcoin’s price in the near future.
Altcoins Gain Prominence in Comparison to Bitcoin
In the beginning of May, Bitcoin experienced a brief decline, with negative ETF inflows lasting only about a week before bouncing back. Over the past two weeks, consistent inflows have highlighted the ongoing demand for Bitcoin, demonstrating the market’s underlying strength despite temporary setbacks. Stay updated with the latest technology news on NEWSLINKER.
Crypto analyst Jessica Miranda has observed that while Bitcoin still holds over 54% of the market share, altcoins have gained importance in relation to Bitcoin. Historically, periods of rising altcoin performance have typically been followed by declines in Bitcoin prices. This trend has been evident over the past nine months since the rally began in September 2023.
Altcoins Surpass the Bitcoin Model
While Bitcoin usually dominates the cryptocurrency market, there have been instances where altcoins have overshadowed Bitcoin, particularly during intense bull runs. The phenomenon of altcoins surpassing Bitcoin was evident during the bear trend of 2022-23, indicating the cyclical nature of market dynamics.
Currently, the BTC dominance chart indicates that Bitcoin’s dominance is approaching a short-term low range at 54%, potentially signaling an imminent rebound. A recovery in Bitcoin dominance could potentially limit any ongoing rally in the altcoin market and challenge expectations of a decline in Bitcoin’s price.
Technical analysis of the total market value of altcoins suggests that resistance is approaching $1.24 trillion, which could lead to a potential pullback in altcoin prices. However, considering the strong upward trend observed over the past eight months, it is expected that this resistance will eventually be overcome.
At this stage, although altcoins have recently demonstrated strong performance, historical models and technical analyses indicate a potential reversal in the first half of June. Therefore, while Bitcoin may experience a potential rise, altcoins could face a temporary decline.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.