Earlier this week, the crypto market saw massive dips, with more than $164 million worth of Bitcoin long trades liquidated from Monday until Tuesday.
Over the weekend, Bitcoin's price dipped below the $30,000 zone for the first time in two weeks, pulling several others down with it.
According to CoinMarketCap, the cryptocurrency is currently hovering around the $29,200 zone with a 2% dip over the last week.
BTC's dominance is declining and currently sits around the 48.4% zone (all from 49.5 last week). Ethereum on the other hand, has increased its standing from 18.2% to 19%.
In this article, we will be going over a few weaknesses that BTC is showing with respect to altcoins, and whether the altcoins are finally ready to outperform Bitcoin.
Is an altcoin season upon us? Might it be time to dump some Bitcoin and buy your favourite altcoin?
Let's explore some of these metrics.
According to CoinMarketCap's metrics, BTC's dominance is starting to wane.
Asides from the cryptocurrency's dominance dip from 49.5% to 48.4%, the BTC versus ETH charts shows something interesting.
As illustrated by the chart above, the Bitcoin versus Ethereum charts have been on an uptrend over the last few quarters.
This indicates that Ethereum is bullish against Bitcoin, and may be on the verge of a breakout very soon.
After breaking out from the 15.72 zone sometime last week, the pair has reversed for a retest and may be on the verge of a potential bounce.
The BTC/ETh chart is one of the biggest indicators of a potential altcoin season, and the higher up against Bitcoin that Ethereum goes, the bigger the chances of a potential altcoin season.
According to a recent tweet by a platform called CCData, the market value of stablecoins has now declined and has reached its lowest level since August 2021, after a 16-month slide.
According to this report released sometime last week, the stablecoin market cap declined 0.82% from the beginning of the month to July 17, bringing the total market cap to about $127 billion.
Bitcoin's price sluggishness and its waning dominance mean that money is being pulled out of it.
And if money is being pulled out of Stablecoins as well, there is only one other place that these funds can go in the crypto market:
Altcoins.
From what we have seen so far, Altcoins appear to be strengthening against Bitcoin, and the altcoin season charts are no different.
Ripple's victory against the SEC sometime in mid-July has given the crypto market much-needed strength, and may just be the driving force the next altcoin season needs.
According to the chart illustrated above, right after the crypto market surge that took over when Ripple won against the SEC in court, the black line in the middle of the chart had a chance to break out.
As it turns out, this line is now starting to gravitate out of the Bitcoin season's territory, and straight towards the altcoin season.
This shows that while altcoins may be far from being in season, they may be on the verge of gaining against the flagship cryptocurrency, and it may be wise to be on high alert.
While Bitcoin may have lost its footing around the 430,000 zone, some of the market's altcoins are still doing well.
A good example is Dogecoin.
Dogecoin shot up this week, after Twitter CEO, Elon Musk changed the name of the iconic social media giant, Twitter, into "X": The "everything" app,
The cryptocurrency is now up by 10% over the last 24 hours, according to CoinMarketCap, and by 20% over the last week.
Another good example of a top performer is AVAX, with a 24-hour rise of 3%, amid the market's sea of red.
Stellar (XLM) is also up by 12.25% over the last week, obviously still enjoying the influence of the outcome of Ripple's case against the SEC.
Overall, the altcoins have shown remarkable resilience in the crypto market despite the odds, and it may not be far-fetched to believe that their day may soon come.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.