Galaxy (@galaxybtc), a widely-followed cryptocurrency analyst on “Crypto Twitter”, recently noted that he thinks bitcoin’s (BTC) market dominance might fall below 30%.
1. Build up $BTC domination
4. Rinse and repeat.
Furthermore, looks like the weaker the dominance uptrend the longer the altseason and so far this one is the weakest.
— Galaxy (@galaxybtc) February 18, 2019
Available data shows that bitcoin dominance, which represents the cryptocurrency’s share of the larger digital asset market, stands at approximately 51.5%. However, Galaxy believes that the relatively recent “build-up [of] BTC dominance” during the prolonged bear market will eventually result in a “breakdown.”
He added that the breakdown of bitcoin’s dominance will be followed by “altseason” – during which some of the smaller market cap coins will experience substantial gains in their value. According to his analysis, “the weaker the dominance uptrend, the longer the altseason and so far this one is the weakest.”
Bitcoin Dominance To Fall Below 30%?
While predicting that BTC dominance will fall below 30% in the near-term, Galaxy believes the crypto market might also experience “the longest altseason” in its 10-year history. Per Galaxy’s assessment, if the total market cap of all other cryptoassets (excluding bitcoin) surpasses $61 billion (which has already happened), then it’s quite likely that the prices of altcoins will increase significantly from their current levels.
Commenting on the recent surge in cryptocurrency prices, Naeem Aslam, a national award winning financial news writer, published a post on Forbes in which he wrote that bitcoin may have been “oversold.” Aslam argued that most analysts expected that bitcoin’s “five consecutive months of losses” would not “last forever.”
He added that if the bitcoin price manages to stay about $3,405, then it’s likely “the sell-off pressure” will begin to “ease-off.” Hopefully, this “encourages” more new investors to enter the volatile cryptoasset market, Aslam wrote.
Crypto Fundamentals May Continue To Improve
Aslam, who has been an active forex trader for the past 10 years and delivers lectures at the London School of Economics, mentioned that the digital asset industry’s “fundamentals are likely to improve” in the next few months. He also expects increases in the “transaction volume for on-chain transactions.” Should this happen, Aslam believes it will “attract growth” because it could encourage more professionals from different industries to begin working on improving crypto-related “infrastructure.”
While discussing the price of Ethereum’s native token, Ether (ETH), Aslam pointed out that the world’s second largest cryptocurrency has managed to “stay above the critical mark of $100.” According to Aslam, this is a key support level for ether as the “recent low of $100 [set on February 6th) was much higher than the previous low of $80 (set on December 14th).” This price trend for ETH indicates that the ETH price may potentially increase further, Aslam noted.