As we approach the month of June, the cryptocurrency market, including Bitcoin and altcoins, is preparing for possible price fluctuations. Recent trends have shown a significant increase in the performance of altcoins compared to Bitcoin. Altcoins have displayed resilience by steadily increasing their market values alongside the price gains of Bitcoin. This trend has sparked speculation about the potential decline in Bitcoin’s price in the near future.
Altcoins Gain Importance Compared to Bitcoin
In early May, Bitcoin experienced a brief decline, with negative ETF inflows lasting only about a week before recovering. Over the past two weeks, consistent inflows have highlighted the sustained demand for Bitcoin, demonstrating the fundamental strength of the market despite temporary setbacks. Stay up to date 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 significance in comparison. Historically, periods of rising altcoin performance have often been followed by declines in Bitcoin prices. This pattern has been evident over the past nine months since the rally began in September 2023.
Altcoins Surpass Bitcoin Model
Although Bitcoin typically dominates the cryptocurrency market, there are instances where altcoins overshadow Bitcoin, particularly during intense bull runs. The phenomenon of altcoins surpassing Bitcoin was evident during the bear trend of 2022-23, highlighting 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 limit the 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, indicating a possible 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 shown strong performance recently, historical models and technical analysis indicate a potential reversal in the first half of June. Therefore, while Bitcoin may potentially rise, altcoins could experience 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 that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
