As we approach the month of June, the cryptocurrency market, including Bitcoin and altcoins, is bracing itself for potential price fluctuations. Recent trends have shown a significant rise in the performance of altcoins compared to Bitcoin. Altcoins have displayed resilience by steadily increasing in market value alongside Bitcoin’s price gains. This pattern has sparked speculation about the possibility of Bitcoin’s price declining in the near future.
Altcoins Gain Prominence in Comparison to Bitcoin
In the beginning of May, Bitcoin experienced a brief decline, with negative ETF inflows lasting only about a week before bouncing back. In the past two weeks, consistent inflows have highlighted the continued demand for Bitcoin, showcasing the underlying 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 although Bitcoin still holds over 54% of the market share, altcoins have gained prominence in relation to Bitcoin. 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 the Bitcoin Model
While Bitcoin typically dominates the cryptocurrency market, there are instances where altcoins overshadow Bitcoin, especially during intense bull runs. The prevalence of altcoins surpassing Bitcoin was evident during the bear trend of 2022-23, indicating 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 upcoming rebound. A recovery in Bitcoin dominance could potentially limit any 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, which could lead to a potential 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 recently demonstrated strong performance, historical models and technical analyses indicate a possible reversal in the first half of June. Therefore, while Bitcoin may have the potential to 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 inherent risks, and should conduct their own research.
