Bitcoin’s insane 2020 uptrend has allowed the benchmark cryptocurrency to rally from lows of $6,800 to highs of $10,500. Although these gains are nothing to scoff at, this bullishness has spilled over into the altcoin markets, allowing some other cryptos to significantly outperform BTC.
Some of the altcoins that have outperformed Bitcoin include Ethereum, Tezos, and Chainlink, which have all seen uptrends that are emblematic of those seen in the early days of 2017.
In the near-term, however, the market wide altcoin bull run may soon draw to a close, as Bitcoin’s dominance looks as though it’s about to surge higher, coming at the expense of altcoins.
Bitcoin’s Dominance Suggests Altcoins are About to See a Notable Pullback
The past few days seem to have shown that there is still significant interest in altcoins amongst investors, with some even being able to set fresh all-time highs.
Chainlink, which has been one of the top performing cryptocurrencies throughout both 2019 and 2020, was just able to rally to fresh all-time highs yesterday when its bulls propelled it past $4.30, with its momentum even extending into today.
Ethereum has also seen notable gains over the past few weeks, with the crypto running from its February lows of $180 to its recent highs of nearly $290.
Today, however, Ethereum’s uptrend has come to a grinding halt after Bitcoin lost its foothold within the $10,000 region, with its subsequent selloff leading most major altcoins to see notable declines.
In the near-term, in order for altcoins to continue seeing intense rallies, it is imperative that either BTC enters another bout of sideways trading, or that it begins slowly climbing higher.
One factor that should be considered in the coming few days is that Bitcoin’s dominance over the market could be poised for a decent bounce, with HornHairs, a popular crypto analyst, noting that it could climb from 63% to 66%.
“BTC DOMINANCE: There’s the bounce. All active positions stopped in profit. Will look to re-enter alts as a whole back around 66% dominance, plus or minus a few based on individual setups,” he noted.
If this bounce does occur, it will likely result in either a disproportionate amount of profit taking on altcoins when compared to Bitcoin, or will stem from investors siphoning their altcoin profits into BTC.