When the cryptocurrency spring was in full swing earlier this year, Bitcoin was cruising back to an impressive price in relation to its low of 2918. More so, it was also dominating the entire cryptocurrency market as it took over 70 percent share of the cryptocurrency space at a time, reaching a high of 77.4 in September.
For the altcoins, this was a difficult time because although they were hanging onto the coattails of Bitcoin, there was not keeping up as the major asset chewed up their portion of the market. Altcoin season looked like a fevered dream.
However, the recent price dip and loss of fire in the cryptocurrency market has also affected the dominance that Bitcoin held on it. Bitcoin’s dominance is now below 67 percent, and there are suggestions that it could be going down even lower.
With this suggestion, the question remains if an altcoin season is looming, and perhaps that another coin may once again spark the market into life again. Litecoin was credited in the early stages of this if turning the bear market around, but what coin could take advantage of the fall of Bitcoin’s dominance?
One cryptocurrency analyst took to Twitter to explain that the monthly Bitcoin dominance chart is showing an ascending wedge and will likely break down soon. If there is a strong break in a downward trend for Bitcoin’s dominance, it could spell a number of things for the next year.
If Bitcoin’s is dominance continues to fall, it could have major ramifications for the designation of the coin. A falling dominance means that there is less desire to use the coin, which could mean that people are further looking for a currency rather than a digital gold as the price continues to struggle.
If that does become the case, it paints a good picture for another currency-like coin to come to the fore. One of these could be Bitcoin Cash, which has been designed to be more usable as currency compared to Bitcoin. Of course, there is also Litecoin which has already had a good rally earlier this year.
Of course, the other side of the coin is that an entire altcoin season could bloom as people move away from Bitcoin for its lack of expected lively action. It could stimulate a look at other coins where there may be better action in the markets for bigger moves.