The co-founders of Glassnode, a leading crypto analytics firm, have identified two key conditions that could potentially trigger a surge in altcoin prices just in time for the holiday season. Jan Happel and Yann Allemann, known as Negentropic on the social media platform X, are optimistic about the prospects of altcoins outperforming Bitcoin in the coming weeks.
One of the indicators they are closely monitoring is the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total crypto market cap that belongs to Bitcoin. According to their analysis, BTC.D has recently turned bearish, signaling a potential opportunity for altcoins to gain value at a faster rate than Bitcoin.
In order for this scenario to materialize, Happel and Allemann emphasize that Bitcoin must consolidate above the $100,000 mark. A period of sideways movement for Bitcoin could create a favorable environment for altcoins to prepare for a breakout. The Glassnode co-founders suggest that the second half of December and the year-end could bring significant momentum to the altcoin market.
On the Bitcoin front, Negentropic notes that BTC has struggled to sustain a significant rally above $100,000 due to selling pressure from long-term holders. These entities, who have held onto their BTC holdings for more than 155 days, have been offloading their coins, leading to downward pressure on the price. However, the Glassnode executives believe that long-term holders are running out of coins to sell, positioning Bitcoin for a potential uptrend in early 2025.
The data indicates that long-term holders have reached their lowest holdings of the year, with a significant outflow observed in 2024. Liquidations and year-end profit-taking activities have contributed to this selling pressure. Looking ahead, the start of the new year could mark the end of this trend, potentially shifting market dynamics in favor of Bitcoin.
As of the latest update, Bitcoin is trading at $101,893, showcasing resilience amidst the market fluctuations. Investors are advised to stay informed and subscribe to email alerts for real-time updates on price action. Follow Glassnode on social media platforms such as X, Facebook, and Telegram for the latest insights and analysis.
In conclusion, the crypto market is poised for an exciting period ahead, with altcoins potentially gearing up for a Christmas rally and Bitcoin laying the groundwork for a resurgence in the new year. Stay tuned for more updates and developments in the ever-evolving world of cryptocurrency trading.