The past seven days have been a wild ride, with the bulls getting a clear upper hand this time. As the total crypto market cap went above the $2 trillion mark once again, anticipation around another rally peaked. However, in the last few months, weekends were especially hard on the market. Weekend blues brought with them dips that left the market stunned. Will this weekend be a pleasant ride upward or will the market go down yet again?
The king coin needs to hold ground
With BTC testing the $47K mark, speculations regarding the market sentiment over the weekend have built up. Even though the ride so far has been smooth, there are clear signals highlighting the continuation of the bull run. Further, things took an unpleasant turn as BTC faced a major resistance.
There was no considerable jump in Bitcoin’s active addresses and daily active addresses. Even though that isn’t particularly a bad sign, BTC’s diminishing dominance is. With Bitcoin retracing its step at the $46K level at press time, its market dominance took a step back.
Source: Trading View
Bitcoin season still in full swing
With Bitcoin’s dominance falling, the alt season is usually expected to take off. That however, didn’t seem to be the case, at the time of writing. While BTC dominance fell to levels lower than in July and June, the market continued to look favorable towards the king coin.
Source: Blockchain center
The altcoin season index was at as low as 8 which meant that it is clearly Bitcoin season. According to this data website, an alt season takes place when 75% of the top 50 coins performed better than Bitcoin, over the last season (90 days). Since the same wasn’t noticed to be occurring in the market, the ongoing season still had Bitcoin written all over it.
Is alt season approaching in the near future
With alts like Cardano, XRP, MATIC, and Dogecoin all rallying in the last week the market has also been bullish on alts. Looking at this, it ideally should be the onset of an alt season but that wasn’t the case. However, this could very well be seen as the pre-alt season rally. According to analyst Benjamin Cowen,
“…with BTC above 20 week SMA as support and its current consolidation in the $46-$48K mark there is enough room for alts to rise.”
Even though most alts were bridging the gap between their ATHs a heat map highlighted that at press time, considerable number of alts were in the red i.e. they were losing prices. More alts needed to be green for an alt season to actually begin, however, this does look like a start.
Cryptocurrency Market Overview. Source: Quantify Crypto
Either way, the chances of a major dip over the weekend were unlikely. However, with a correction in BTC prices, the market could see a minor correction too. Other than that most metrics highlighted healthy signs.
