The latest analysis warning suggests that due to the surge in alternative coins, Bitcoin (BTC) could "flip over" and reverse its recent upward trend.
On December 9, prominent analyst and social media commentator Matthew Hyland posted an article on X (formerly Twitter), expressing caution about the price trend of BTC.
Following the end of the week's Wall Street trading, Bitcoin bulls maintained their momentum, with BTC/USD reaching a 19-month high of $44,729 on Bitstamp on December 8.
Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin subsequently dropped below the $44,000 mark and consolidated its range intraday.
However, for Hyland, there are more dangerous signs indicating that the bull market may encounter trouble after a strong 60% increase since early October.
He said, "Bitcoin's dominance is changing, as we have noticed the bearish divergence. It has given back all the gains from the past few days," he wrote in an X post.
Hyland referred to the recent surge in Bitcoin dominance, reaching 55.26% on December 6, the highest level since April 2021. Subsequently, the Bitcoin market quickly reversed, and as of the time of writing, Bitcoin's market dominance is at 53.4%.
Others believe that such a dominance reversal will allow altcoins to commence a major rally of their own — a phenomenon commonly known as "altseason."
This seems to have already begun on the same day, as Cardano (ADA) and Avalanche (AVAX) among the top ten cryptocurrencies by market capitalization both rose by 22% within 24 hours.
Only the largest altcoin, Ethereum (ETH), has still risen by 12% in the past seven days, but it is treading on thin ice. ADA and AVAX are also the leaders this week, with gains of over 50%.
"Bitcoin is down 2%, and the Bitcoin dominator and the alternatives are going crazy today," popular trader Jacob Canfield told his X subscribers in a comment on December 6.
On that day, the total market value of altcoins rose by 2.4%, with an increase of 18.4% since December.
This article does not contain investment advice or opinions. All investment and trading activities involve risks, and readers should conduct their own research when making decisions.
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