Bitcoin (BTC) on Thursday overestimated its recent drop close to $ 52,000 as the largest cryptocurrency’s continued weakness continues.
1-hour light chart BTC / USD (Bitstamp). Source: TradingView
Sellers are waiting for the “delights” of altcoins
Cointelegraph Markets Pro and TradingView showed a weak day for bitcoin traders as the bitcoin / dollar pair briefly dropped below $ 53,000 and then dipped to around $ 1,000.
The move came when Bitcoin was on the verge of losing market dominance over altcoins in what has traditionally been the “real” start of the “alternate season.”
The monitoring resource charts in the CoinMarketCap chain showed that the share of Bitcoin in the total market value of the cryptocurrency as of Thursday was only 50.1%.
After falling sharply this year, despite its own price increases, bitcoin’s share of market value relative to altcoins seems to have broken through support that has lasted more than three years.
Given the historical behavior, everything when Bitcoin loses the 50% mark, altcoins are moving quickly to lift a recession, often led by ETH (ETH).
Thus, the adjustment process leads to the launch of an alternative currency that does indeed fit the description of the “alternate season” – rapid growth that peaks, followed by a cooling period as Bitcoin regains some of its lost positions. This was the case in mid-2017 and early 2018.
Cryptocurrency market share graph. Source: CoinMarketCap
If history repeats itself, there will be music in the ears of altcoin investors, many of whom have long stated that the “alternative season” has already begun, but have not yet shown their true colors.
Meanwhile, the race to the top may surprise them this time around, as many altcoins have already shown incredible results in 2021.
“BTC dominates at 51.6%. The magic begins when 50% is broken, ”the famous Twitter account CryptoBull summed up last week.
The market is breaking the Dogecoin mantra
At the time of writing, Ether, in particular, has shown no signs of weakness in the face of new volatility in BTC / USD, which surged 6% in 24 hours and approached $ 2,500 again.
Others were less optimistic, with most cryptocurrencies hitting the top 50 that day.
Dogecoin (DOGE), the former star of the show, continued its decline, reaching record highs of $ 0.44 on some exchanges. DOGE / USD has already dropped 40% from Thursday’s high.