Crypto Market Eyes New ATH—Bitcoin Dominance Drops as Altcoins Rally
Crypto market capitalization hit $3.80 trillion on Monday, a record.
Bitcoin fell below 63% while Ethereum rose beyond 11%.
Veteran analyst Peter Brandt predicts a cup-and-handle altseason.
On Monday, the cryptocurrency market value reached a record $3.80 trillion, up 15% in July. Bitcoin's (BTC) rise to a new all-time high at $123,218 sparked a market rebound under US regulatory pressure and political deadlock.
As Ethereum (ETH) gains market share, Bitcoin's market share declines, showing investors' risk appetite. Veteran analyst Peter Brandt sees a cup-and-handle pattern in overall crypto market value, excluding Bitcoin, that might foreshadow the next altcoin season.
Ethereum and other altcoins challenge Bitcoin's supremacy.
Bitcoin dominance (BTC.D) is the proportion of cryptocurrency market capitalization that is Bitcoin. Altcoin capital movement from Bitcoin to altcoins caused a huge decrease in BTC.D between 2018 and 2022.
BTC.D leads at 62.89%, down from 66% on June 27. BTC.D may fall below the 50-week Exponential Moving Average (EMA) around 60.90% with a weekly closure below 63.15% support on May 11.
As mood strengthened, market capitalization touched a record $3.80 trillion on Monday. Risk-on market attitude is indicated by the CMC Fear and Greed Index, which is 70.
Additionally, the CMC Altcoin Season Index is 38, up from 23 on July 1, showing a capital movement from Bitcoin to altcoins. Altcoin seasons are marked by values over 75.
Capital rotation pumps have raised the whole crypto market capitalization, excluding Bitcoin (whole 2), by almost 8% this week to $1.41 trillion. The TOTAL 2 weekly chart shows a cup-and-handle pattern increasing, says Peter Brandt.
The expert points to the neckline around $1.70 trillion, near to the 2021 altcoin season high of $1.71 trillion. A weekly closing above this level might start an altseason cycle.
Altcoin market capitalization might reach $2 trillion, pushing the overall market worth beyond $4 trillion.
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