Bitcoin’s price drop generally causes both concern and celebration, but the last few instances have only been the former.
The dependence of the altcoins on Bitcoin has left them impaired, resulting in a failed Altcoin Season.
Where Does Bitcoin Stand?
Bitcoin’s price has declined sharply by 4% over the past 24 hours, dropping to $54,300. The dip below $55,000 raises concerns among investors, as this level represents the last significant support before a potential fall to $50,900.
This $50,900 target corresponds with the double top pattern observed in March and July, indicating a possible additional 8% decline.
Despite this, there is still hope for a rebound. If Bitcoin manages to recover and establish $55,000 as a support level once more, it could pave the way for the price to climb back up to $58,800.
Nevertheless, the drawdown did impact BTC’s market dominance, albeit very slightly. At the moment, BTC accounts for 54.64% of the entire crypto market capitalization. Despite the drawdown, 54.64% is still bearish for altcoins.
Read More: 12 Best Altcoin Exchanges for Crypto Trading in July 2024
This will likely extend the arrival of Altcoin Season, pushing it to October when the macro-financial market conditions improve.
Altcoin Season Is Very Far
According to the Altcoin Season Index, the market is currently witnessing Bitcoin Season. Generally, when 75% of the top 50 altcoins, excluding stablecoins, perform better than BTC, an Altcoin Season is considered to be active.
However, this is not the case presently. The past few weeks have been terrible for altcoins just as much as for BTC. As a result, the market is not even witnessing an Altcoin Month at present, let alone a Season.
Read More: Which Are the Best Altcoins To Invest in July 2024?
Thus, the entire market would need to improve in order for altcoins to dominate the crypto space and outperform Bitcoin.
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