The cryptocurrency market sees a shift as Bitcoin's dominance wanes, with a sell signal indicated for the first time since 2020. Bitcoin's market share drops to 55.80%, hinting at a potential 'altseason' where other cryptocurrencies may gain traction.
The Relative Strength Index (RSI) for Bitcoin's dominance reinforces negative expectations, suggesting capital might move into altcoins, creating new investment opportunities. This aligns with a decrease in long-term Bitcoin holdings, now at the lowest levels since mid-2022.
Recent declines show long-term holders have reduced their balances to 12.45 million BTC, marking a 9.8% drop, less severe than past cycles. Observers view this as strategic repositioning by investors to adapt to changing market conditions.
A rare bullish signal from the Spent Output Profit Ratio (SOPR) suggests potential for a Bitcoin rally in the next few months, despite existing bearish pressures. This indicates hope for risk-tolerant investors.
Analysts caution for a possible market slump as January 2025 nears but note a strategic approach is vital in the face of Bitcoin's declining dominance and increased volatility.
