While bitcoin has proven cryptocurrency naysayers wrong again with its astounding gains in the past weeks, an adjusting market dynamic becomes more apparent as alternative cryptocurrencies (altcoins) stage a comeback.
Bitcoin welcomed newcomers to the crypto space in an all-too-traditional baptism of fire on Sunday, so much so that upwards of $500 million in long liquidations were recorded per figures from Coinalyze.
Meanwhile, Ethereum was off to the races, surging 50% in the same period.
Bitcoin vs Ethereum performance
During the split behaviour, ether touched $1,160, just 19% shy of its all-time high printed in January 2018. Conversely, bitcoin briefly withdrew to $28,500 (Bitfinex) before reclaiming the $30,000 level.
An incoming trend adjustment?
The disparity in performance is clearer on the ETH/BTC pair which shows Ethereum staging an impulsive move from 0.023 to 0.035 Sats in less than 48 hours.
However, Ethereum bulls were stopped in their tracks by weekly overhead resistance delineated by the 0.035 level. Until this crucial weekly resistance is turned into support, Ethereans have their work cut out for them.
ETH/BTC weekly chart
In prior market cycles, ethereum lagged bitcoin performance until the later stages of the cycle. After a certain point, the tables turn as ethereum rages on to bring about another ‘alt season’. If history is a guide, then crypto is revving the engine for another altseason bonanza.
DeFi Index (blue) VS bitcoin, 1-hour chart
Not out of the woods yet
As Ethereum and various alternative cryptocurrencies and DeFi coins gain momentum, bitcoin dominance has performed as market participants would expect, sliding below 70%.
A common saying among traders is that ‘the trend is your friend until the end’. Clearly, the bitcoin dominance upward trajectory trend persists despite this recent slide.
At the time of writing, bitcoin dominance remains above 68%, lending credence to the possibility that this latest move is another bullish retest for bitcoin dominance as bitcoin bulls eye the 80th percentile.
However, in light of ethereum’s surging performance and a flurry of alternative cryptocurrencies and DeFi coins that offer lucrative financial products, crypto markets could be on the verge of redirecting the trend.
Will investors realise profits into various mid-cap and small-cap projects again?
The ball is in your court, defiers.