Bitcoin dominance drop and resistance at $55K stoke alt season hopes
Ether’s new all-time high, a drop in Bitcoin’s dominance rate and overhead resistance at $55,000 have analysts predicting that an altcoin season is at hand.
The overall cryptocurrency market saw a second day of gains on Tuesday after the weekend sell-off proved to be a good buying opportunity for retail and institutional investors.
Lower gas fees following the Ethereum network’s Berlin upgrade along with an increase in institutional buying and decentralized finance activity lifted the price of Ether to a new all-time high at $2,680.
Data from Cointelegraph Markets and TradingView shows that Bitcoin (BTC) climbed above $54,000 in the early trading hours on Tuesday, and bulls are now aiming to break through the $55,000 resistance level for a possible rally to $58,000.
With Ether and altcoins showing signs of strength and BTC remains range-bound, there is increasing chatter on Crypto Twitter as traders speculate on whether an altcoin season is on the verge of starting.
This recovery looks similar to previous market bottoms
As highlighted in a recent report from Ben Lilly, co-founder and analyst at Jarvis Labs, the strong 11.5% rally on Monday is similar to previous recoveries in the price of BTC following a bottom.
The purple lines on the chart above represent the “lows in Bitcoin futures annualized one month rolling basis,” which Lilly points out to highlight a possible signal that a price breakout could be ahead.
Lilly said:
“Each time prior to a price reversal, the premium on futures one month out were trading approximately 6-7% more than spot prices.”
Select altcoins hit new all-time highs
Several altcoins saw their prices reach new record highs alongside Ether on Tuesday.
Polygon (MATIC) continued its strong rally, moving as high as $0.75 before taking what appears to be a short breather. Uniswap (UNI) also saw its token price reach a record high at $40.50 following a 17% rally from the lows on Monday.
The overall cryptocurrency market capitalization now stands at $2.08 trillion, and Bitcoin’s dominance rate is 49.5%.
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