The creators of the cryptocurrency analytics firm Glassnode are cautioning that altcoins may lose all their bullish momentum following last week’s market correction. Jan Happel and Yann Allemann, known as Negentropic on the social media platform X, are warning their 63,400 followers that the “altcoin season,” which they believe started in late November, could come to a sudden end after altcoins experienced significant pullbacks over the past seven days.
According to the co-founders of Glassnode, traders and investors are likely to adopt a risk-off approach towards altcoins unless Bitcoin recovers a key psychological price level.
“Is This the End of Altcoin Season?
Bitcoin dominance is surging after dropping below $100,000, while altcoins are losing crucial support levels. Dominance has risen and resumed its upward trend, indicating a stronger Bitcoin environment.
If BTC stabilizes above $100,000, we may see a pump in altcoins that are currently in accumulation zones. Until then, Bitcoin seems poised to lead, with altcoins lagging behind.”
The Bitcoin Dominance (BTC.D) chart tracks the percentage of the total cryptocurrency market capitalization that belongs to Bitcoin. In the current market state, a rising BTC.D suggests that altcoins are losing value faster than Bitcoin. At the time of writing, BTC.D is hovering around 59%.
When looking at Bitcoin itself, the Glassnode executives note that long-term Bitcoin holders are heavily selling their holdings while other investor cohorts are stepping in to take their place.
“The Board Keeps Shifting.
As BTC continues to flow out of exchanges during this dip, long-term holders are forcefully exiting, while short-term holders are stepping in without hesitation.
Whales are quietly accumulating, miners remain neutral, and selling pressure has merely reshuffled the board.
New hands are absorbing the sales.”
At the time of writing, Bitcoin is valued at $97,246.
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