Jan Happel and Yann Allemann, founders of the crypto analysis firm Glassnode, soon realized that altcoins are Bitcoin. $102,189.6It indicates that it can perform better than . The duo, known under the pseudonym Negentropic on the social media platform X, stated in a statement to their 63,300 followers that altcoins could surpass Bitcoin in the next two weeks.
The Fall of Bitcoin Dominance
Glassnode founders stated that they looked at the Bitcoin Dominance (BTC.D) chart and that Bitcoin’s share in the total crypto market value was decreasing. The chart, where BTC.D continues its downward trend, shows that altcoins have the potential to appreciate faster compared to Bitcoin.
“Bitcoin dominance has been rejected at the upward trendline – is this the setup for a Christmas rally in altcoins?” Allemann questioned whether this was a sign for a pre-Christmas altcoin rally.
Bitcoin Consolidation Above $100,000
It was emphasized that Bitcoin must consolidate at a level above $ 100,000 for altcoins to come to the fore. A period of sideways movement may create the necessary ground for altcoins to explode.
Selling Pressure from Long-Term Investors
Negentropic stated that Bitcoin failed to initiate a major increase above $100,000, which is due to selling pressure from long-term investors who have been holding Bitcoin for more than 155 days. Glassnode managers claimed that the amount that long-term investors will sell their Bitcoins has decreased, and this increases the potential for Bitcoin to gain value at the beginning of 2025.
“Selling Pressure on Long-Term Investors Continues,” Happel said, adding that long-term investors have reached the lowest Bitcoin holdings of the year and the biggest outflow will occur in 2024.
While it was stated that year-end profit realization and consecutive liquidations increased the sales pressure, it was stated that the start of the new year may end this sales trend and indicate a potential change in market dynamics.
It was reported that Bitcoin is currently trading around $101,893. The fact that BTC.D is hovering around 56.94% shows that it remains below the trend line specified by the Glassnode founders.
In light of these developments that may affect market dynamics, it may be beneficial for investors to consider potential opportunities in the altcoin market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
