Summary:
Bitcoin (BTC) trades in the low $90,000 range.
QCP Capital suggests a drop in BTC.D below 58% could signal the start of altcoin season.
Solana (SOL) recently surged more than 17%, outperforming BTC and ETH.
Altcoins have shown signs of recovery, indicating potential for an altcoin season.
Analysts predict BTC dominance will decline starting in December.
Bitcoin (BTC) is currently trading in the low $90,000 range, continuing its impressive price trajectory. However, a recent analysis by trading firm QCP Capital suggests that a drop in Bitcoin dominance (BTC.D) below a crucial threshold could herald the start of the much-anticipated altcoin season.
Interest Rate Cuts and Political Changes Fueling Crypto Growth
In a recent Telegram update, QCP Capital discussed the impact of potential interest rate cuts and the possibility of a Trump administration on the crypto market. They highlighted Solana (SOL), which recently outperformed both Bitcoin and Ethereum (ETH), surging over 17% from Friday’s lows.
Despite Bitcoin's steady ascent towards the psychologically significant $100,000 mark, many investors remain cautious about an impending alt season. Analysis from Rekt Capital suggests that Bitcoin is just beginning its parabolic phase.
Key Threshold for Bitcoin Dominance
QCP Capital noted that historically, altcoins tend to outperform major cryptocurrencies when they consolidate after significant rallies. The firm stated:
"Historically, we’ve seen altcoins outperform whenever the majors consolidate after a significant rally as profits rotate into smaller-cap coins. BTC’s dominance is around 60% now, and it will probably need to drop below 58% to signal the start of altcoin season."
Currently, BTC.D stands at 60.10%, having been on an upward trend since November 2022 when it was at 39.92%. During this period, most altcoins have significantly underperformed Bitcoin.
Recently, altcoins have shown signs of recovery, coinciding with the growing likelihood of a pro-crypto Trump administration. Assets like SOL, Cardano (ADA), and XRP have outperformed Bitcoin in recent weeks.
Predictions for Altcoin Season
QCP Capital’s analysis is echoed by crypto analyst @MikybullCrypto, who predicts that BTC.D will decline starting in December, with altseason potentially kicking off toward the end of November and lasting until March 2025.
Some analysts believe Bitcoin may continue its rally before showing signs of weakness. For example, Tom Lee, head of research at Fundstrat, recently mentioned that Bitcoin is on track to reach $100,000 by the year's end.
The altcoin market cap recently surged past a key resistance level, indicating that the altcoin season might be closer than anticipated. As of now, Bitcoin trades at $91,760, remaining flat over the past 24 hours.
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