Bitcoin (Bitcoin) It took less than a month to recover from below $29,500 on July 20 to the swing high of $48,200 on August 14 and helped the cryptocurrency market and traders regain a new bullish momentum. They Worried about the prospect of another prolon bear market.
At present, BTC’s rise has stagnated near the price level of 46,000 USD. This horizontal trading stage provides an opportunity for altcoins to move forward. As shown in the chart below, the total market value of the altcoin market has risen by 80% since July 20. At the same time, Bitcoin’s dominance has fallen by 10% since July 30.
Data from TradingView shows that the dominance of Bitcoin altcoins has been rising in recent weeks, but due to the market-wide oversold rebound, new partnerships and agreement updates, many altcoin projects have rebounded. The trend disappeared on July 30.
DeFi and NFT projects hit a record high
In the past four weeks, projects focused on NFT and Decentralized Finance (DeFi) are the leading altcoin winners.
The three stocks with the biggest gains in the past month include Axie Infinity (AXS), Solana (SOL) and Terra (LUNA), and their prices all hit record highs on August 17
As shown above, the price of AXS soared by nearly 400%, while LUNA and SOL rose by 340% and 187%, respectively.
An interesting observation to note is that Solana and Terra Implementation of the London hard fork On the Ethereum network.
Although the London hard fork has brought some beneficial changes to the Ethereum network, including the token burning mechanism that may deflate the Ethereum, the upgrade does not help much to solve the problem of high transaction costs. This opened the door for competitive first-tier solutions such as Solana and Terra to gain market share.
Analyst announces the start of altcoin season
The proliferation of altcoins has led many traders to predict the arrival of a new altcoin season. According to the pseudonym Twitter analyst The Moon, the altcoin season follows the sharp increase in BTC prices, especially when prices stagnate or fall back.
The altcoin season is happening as I predicted! ! ! pic.twitter.com/Od0wef67ga
-Moon (@TheMoonCarl) August 11, 2021
In the past two weeks, more and more altcoins have hit record highs, further proving the beginning of the altcoin season.Daily double-digit earnings and Price breakthroughs for items such as Audius and Memes like Dogecoin (dog) And Shiba Inu (SHIB) made headlines, and cryptocurrency Twitter was full of chatter about the hottest altcoins.
Despite the strong performance, it is interesting that the seasonal altcoin index is actually at its lowest point in 2 years, as shown in the tweet below.
-Holger (@rohmeo_de) August 16, 2021
In the long run, what this means remains to be explained, but a bullish view is that the altcoin rally seen in the past two weeks is just a prelude to the real altcoin season that has not yet begun.
So far, Bitcoin is still the leading market indicator that determines the future direction of the entire crypto market, but data shows that the integration phase usually provides altcoins with opportunities to push higher.
If Bitcoin prices fall back to $40,000 or below, then most analysts expect altcoin prices to also move south. On the other hand, a rebound above 48,000 USD may see altcoin prices higher.
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