Bitcoin continues to be held below the $120,000 mark as the Wall Street market opens on Monday, amid increasing warnings about the bullish market.
Bitcoin raises concerns about the future of the bull run
Data from TradingView shows that BTC's price action is fluctuating within a narrow range, while altcoins are starting to surge. Among the top gainers of the day is Solana (SOL), which recorded an increase of about 6% within 24 hours.
As Bitcoin's market dominance decreases, many investors are beginning to pay attention to the possibility of a real 'altcoin season'.
Keith Alan, co-founder of the trading platform Material Indicators, is one of those emphasizing the phenomenon of capital flowing out of BTC and into altcoins.
“This chart shows capital being rotated from BTC and stablecoins to altcoins. If TOTAL3ES continues the current trend and surpasses the previous peak, we could witness the market capitalization reaching $1 trillion for the top 100 altcoins (excluding ETH and stablecoins),” he shared.
However, Material Indicators still leaves open the possibility that BTC's price could recover — especially if BTC continues to drop near the important trend line around the $110,000 level, which is Bitcoin's previous all-time high.
“Besides consolidating in the current price range, the healthiest action for BTC would probably be to test the support zone at the trend line. If fortunate enough to achieve that move, it would confirm a solid support base for the next increase. At the same time, this could also trigger a flow of capital back from altcoins to Bitcoin and mark the peak of the current altcoin surge,” they commented.
In contrast to the optimistic view, renowned trader Roman appears less optimistic about the future of Bitcoin.
When analyzing the weekly chart, Roman warns of signs of 'exhaustion' gradually appearing on price indicators, particularly the relative strength index (RSI) and the moving average convergence/divergence (MACD).
“There is significant bearish divergence on the RSI/MACD and trading volume at ATH is quite low – this is concerning. The dominance rate of Bitcoin is declining and altcoins are soaring, which further proves that liquidity is rotating – a sign of the end of the bull run. Buy altcoins while you can. The price increase of BTC may soon come to an end,” part of a post on X by Roman stated.
XRP makes its mark by surpassing the market capitalization of McDonald's
The altcoin season continues to be in the spotlight as the traditional financial market resumes operations.
One of the notable pieces of news is that XRP has surpassed the market capitalization of McDonald's, continuing its strong upward momentum from the previous week.
“Has the altcoin season begun? With altcoin season indicators at major data sources surpassing 50 – the highest level since last December – the data clearly supports this,” trading company QCP Capital questioned in their latest newsletter sent to followers on Telegram.
QCP also notes that Bitcoin's dominance is giving way to ETH, a significant turning point for the market.
“The dominance rate of BTC has decreased from 64% to 60% in the past week as it struggles to reclaim the $121,000 mark, while the market share of ETH has increased from 9.7% to 11.6%. If this trend continues, the next wave of the altcoin season may have actually begun,” the newsletter stated.
