Key Points
- Bitcoin’s dominance charts and Tether’s dominance indicate a potential bullish future for Bitcoin.
- The altcoin market might face complications in the coming weeks due to these trends.
Bitcoin’s performance has been underwhelming since April. However, current trends in the Tether and Bitcoin dominance charts suggest a promising future for the leading cryptocurrency.
Bitcoin’s Market Dominance
In June, the altcoin season index scores were around 25, indicating a strong Bitcoin season. However, this trend has started to change over the past two weeks, with the index peaking at 46 on July 12th before dropping to 35. This suggests that an altcoin season could be imminent, but other metrics disagree.
An analysis of the Bitcoin dominance chart on the daily timeframe shows a range formation between 54% and 56.4%. Over the past month, the metric has stayed below the mid-range level, indicating a lack of a strong trend. This shows that the altcoin market has been struggling alongside Bitcoin. However, the higher timeframes show that the BTC.D is trending upwards, hinting that Bitcoin might outperform the wider market in Q3 2024.
Bitcoin’s Potential Rise
As the leading cryptocurrency, Bitcoin is a key indicator of market sentiment. A significant influx of capital into Bitcoin is required before it can be rotated into altcoins, leading to the much-anticipated altcoin season.
Over the past three days, the Tether dominance chart has retraced while Bitcoin prices have risen, indicating a market-wide price rally. However, the USDT.D is expected to continue its downtrend after this bounce, which could be beneficial for Bitcoin prices.
The Puell Multiple, a measure of the profitability of mining pools compared to the previous year, is currently at 0.72. A reading of 0.5 or lower would signal a strong buy. This is yet another sign that Bitcoin could appreciate in value in the coming months.
