Bitcoin (BTC) resumed recent lows near $ 52,000 on April 22nd as ongoing weakness in the largest cryptocurrency persisted.
Traders wait for altcoin “magic”
Cointelegraph Markets Pro and Tradingview showed a lackluster day for BTC traders as BTC / USD briefly fell below $ 53,000 before stabilizing around $ 1,000 higher.
The move came when Bitcoin was about to lose its market cap dominance over altcoins, which traditionally marks the “real” start of the “alt season”.
Charts from the on-chain monitoring resource CoinMarketCap showed that Bitcoin’s share of total cryptocurrency market capitalization was only 50.1% on Thursday.
After Bitcoin fell sharply that year despite its own price hikes, Bitcoin’s market cap share over altcoins appeared to break the support it had seen for over three years.
Looking at historical behavior, every time Bitcoin loses the 50% mark, altcoins move in quickly to fill the void often led by Ether (ETH).
The reshuffle thus triggers an altcoin run that really fits the description of the “old season” – rapid gains to a peak, followed by a cooling off period when Bitcoin loses some ground again. This was the case in both mid-2017 and early 2018.
If history repeats itself, it would be music for altcoin investors, many of whom have long claimed the “alt season” is already underway but has not yet shown its true colors.
A race to the top could even surprise them this time, as many Altcoins have already performed incredible in 2021.
“BTC dominance 51.6%. The magic starts when 50% breaks,” summarized the popular Twitter account CryptoBull last week.
Market breaks Dogecoin’s spell
At the time of writing, Ether in particular showed no signs of weakness in the face of new wobbles for BTC / USD, up 6% in 24 hours to approach USD 2,500 again.
Others were less optimistic as the top 50 cryptocurrencies were largely declining on the day.
Dogecoin (DOGE), previously the star of the show, continued its slip after hitting an all-time high of $ 0.44 on some exchanges. DOGE / USD is already down 40% from Thursday’s high.