Ethereum

2024

Bitcoin

Leading cryptocurrency analysts are warning of an imminent selloff in alternative digital assets, despite <a href="https://yellow.com/asset/btc">Bitcoin</a>'s recent strength. Technical patterns suggest a significant market correction could unfold by early 2025. 
Benjamin Cowen, founder of ITC Crypto, <a href="https://cointelegraph.com/news/grand-finale-altcoin-reckoning-says-crypto-trader">sees</a> parallels with previous market cycles. "The grand finale of the altcoin reckoning has arrived," Mr Cowen told the Financial Times. He predicts the correction will conclude between December 2024 and mid-January 2025. 
Bitcoin's market dominance has reached 60.5 per cent, its highest level since March 2021. This metric traditionally signals pressure on alternative cryptocurrencies, which typically struggle to gain traction when Bitcoin commands more than half of total market value. 
Technical analysis reveals similarities with the 2019 bear market pattern. "Alternative cryptocurrencies have experienced consistent devaluation against Bitcoin for three consecutive years," notes Mr Cowen. Historical data suggests significant recoveries occurred in post-halving years 2017 and 2021. 
The broader crypto market has retreated over the weekend, with total capitalization falling to $2.4tn. Alternative cryptocurrencies have borne the brunt of the decline. Ethereum has dropped 11 per cent from its October 30 peak, matching losses in Solana. Binance's BNB token has declined 8 per cent. 
"These movements align with historical patterns preceding major market shifts," says a senior crypto derivatives trader at a leading digital asset firm. Bitcoin's relatively modest 5.8 per cent decline from its recent $73,000 high underscores its relative strength. 
Some market participants see opportunity in the potential drawdown. Trader "Sensei", followed by 60,000 social media users, predicts "the biggest altseason ever will start in less than 10 days." However, institutional analysts remain skeptical of such immediate reversals. The current market structure echoes previous cycles where alternative cryptocurrencies faced significant selling pressure before eventual recoveries. Historical data suggests such recoveries typically begin after Bitcoin's market dominance falls below 50 per cent. 
Trading volumes and order book depth indicate sustained selling pressure across alternative cryptocurrency markets. The next few weeks could prove crucial in determining whether historical patterns repeat. 
Market makers note that institutional interest remains focused on Bitcoin, suggesting alternative cryptocurrencies may face continued headwinds before any meaningful recovery.

Crypto Analyst Warns of 'Altcoin Reckoning' as Bitcoin Dominance Peaks

Yellow News

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