Altcoins, Bitcoin, Cryptocurrency

Will the Altcoins send their blessings this Christmas?

Folks who are active in the cryptocurrency markets during December 2017 will recollect that the most desirable gift imaginable was waking up on Christmas day to find your altcoins, or your entire portfolio, had multiplied in price overnight.

After Bitcoin’s spectacular rise to $16,000 this year, are the stars aligning for a repeat of 2017 and another alt season for Christmas?

Bitcoin Dominance Dropping Since 2017

As we can see, Bitcoin dominance has been in a broad downtrend ever after it topped out at $20,000 in December 2017:

By September 2019, it had accomplished to reclaim 65% of this lost dominance, but that was the end of the recovery – since then, it has been on a constant downward trend. We are currently seeing another rejection at the trendline after a two-month rally, during which time Bitcoin has comprehensively outdone last year’s high of $14,000, all of which suggests that a pullback is imminent.

Alt Season Only Possible In a Settled Market

The biggest alt seasons have come when Bitcoin has cooled down after a big move, with 2017 being the prime example. This makes sense as all the money that has been made on Bitcoin flows into alts, moving the entire market. With Bitcoin set to top out soon after enjoying a 350% move since March, the odds of a sizeable alt season on the horizon are excellent indeed.

Supposing Bitcoin does reconstruct soon, what does that mean for a Christmas alt season 2020? The obvious answer is that we don’t know if Bitcoin dominance will retrace in a nice curve as it did between May and October or if it will knock on the door a few more times as in the months prior. Nevertheless, it looks very likely that a retracement ultimately to the support level of 49.5-52% is on the cards:

Though, the rejection will take time, with alts unlikely to run massively while Bitcoin is actively moving. It is conceivable then to think that we have to wait another few weeks for Bitcoin to cool off before alts can start pumping in unison ultimately, and with six weeks to go until Christmas, the appealing prospect of enjoying the festivities in the middle of an alt season is very real indeed.

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