The last seven days have been a wild ride, with the bulls taking a clear advantage this time. As the total crypto market capitalization surpassed the $ 2 trillion mark once again, anticipation around another rally peaked. However, in recent months, weekends have been especially tough for the market. The weekend blues brought with it drops that left the market stunned. Will this weekend be a pleasant ride up or will the market go down once again?
The king’s coin needs to stand firm
With BTC testing the $ 47K mark, speculation has accumulated regarding market sentiment over the weekend. Even though the journey so far has it has been smooth, of course signals that highlight the continuation of the bullish run. Also, things took a nasty turn when BTC faced heavy resistance.
There was no considerable jump in active Bitcoin addresses and daily active addresses. While that’s not a particularly bad sign, BTC’s declining dominance is. With Bitcoin retracing its passage through the $ 46K level at press time, its dominance of the market took a step back.
Bitcoin season is still in full swing
With the fall of Bitcoin’s dominance, the alt season is generally expected to take off. However, that did not appear to be the case, at the time of this writing. While BTC’s dominance fell to lower levels than in July and June, the market continued to look favorable towards the king coin.
The index for the altcoin season was as low as 8, which means that it is clearly the season for Bitcoin. According to this data website, an alt season occurs when 75% of the top 50 coins performed better than Bitcoin, during the last season (90 days). Since the same was not noticed to be happening in the market, the current season still had Bitcoin written all over it.
Alternate season approaching in the near future?
With highs like Cardano, XRP, MATIC, and Dogecoin all rebounding in the last week, the market has been bullish on highs as well. Looking at this, it should ideally be the start of an alternate season, but that was not the case. However, this could well be seen as the alternate pre-season rally. According to analyst Benjamin Cowen,
“… With BTC above the 20-week SMA as support and its current consolidation at the $ 46- $ 48K mark, there is enough room for the heights to rise.”
Even though most of the alternatives were closing the gap between their ATHs, a heat map highlighted that, at the time of publication, a considerable number of alternatives were in the red, meaning they were losing prices. More alts needed to be green for an alternate season to really begin, however this seems like a start.
Either way, the chances of a major drop over the weekend were unlikely. However, with a correction in BTC prices, the market could also see a minor correction. Other than that, most of the metrics highlighted healthy signs.
This is a machine translation of our English version.
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