Altcoin Market Resilience Signs ‘Regime Change’ – Analysts
Altcoins remain very strong despite Bitcoin's recent decline, which analysts say may mean investors are adjusting how they protect their capital during times of market volatility.
“The change is a sign of a potential regime change, where investors are exploring the value of altcoins, they differ from the usual pattern of flocking to Bitcoin during the fall,” a September 9 report from analysts of the crypto exchange Bitfinex.
“Altcoin markets have shown resilience,” he added.
The analysts cited the latest decline in the price of Bitcoin (BTC), which fell to $52,827 on September 7, a 10.8% drop compared to seven days earlier, according to CoinMarketCap data.
Bitcoin has been below the critical $60,000 level since August 30, but has since recovered slightly to $57,001.
Bitcoin is up 0.65% in the past seven days. Source: CoinMarketCap
He pointed out that Bitcoin dominance – a measure of the crypto market share – fell by 1.3 percent during the Bitcoin price decline. However, the market value of all cryptocurrencies outside the top ten increased by 4.4 percent.
According to TradingView data, at the time of publication, Bitcoin's dominance was 57.33%, down 0.50% last week. It's not far from 60%, which Benjamin Cowen, founder of Cryptoverse, sees as the “last step” to Bitcoin dominance.
Traders often look for signs that Bitcoin's dominance has peaked, prompting them to sell Bitcoin and shift capital into alternative assets such as altcoins.
Over the past month, Bitcoin dominance has decreased by 0.53%. Source: TradingView
Meanwhile, the total altcoin open interest (OI) – which represents the total number of contracts that have not been terminated or completed by delivery – has fallen 55% from an all-time high, which Bitfinex analysts say is a sign of “speculative apathy and impotence”. Among the sellers”
Many traders agree that a few speculative bets on altcoins suggest the market will continue to strengthen.
Related: Altcoins Amid ‘Sell Your Home' Buy Signals, Says Trader
“The strength of altcoins showed in the recent correction and the bounce with relatively low open interest pump is a sign of lasting strength,” the pseudonymous crypto trader Emperor wrote in a post on September 10 X.
“Preference altcoins Bitcoin will continue to move forward both down and up. The parabolic altcoin phase of the cycle is near. Very close,” added the emperor.
Meanwhile, 360 Traders said the altcoin's market value “looks very bullish.”
Michael van de Pop, founder of MN Trading, believes it's a buying opportunity for altcoins;
“The boring situation is the time to collect before new pressure occurs. That is the current state of Altcoin markets,” Van de Pop wrote on September 10.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
