Altcoins Bounce Back With BTC Dominance Dropping, Is the Bottom In?

After facing the brutal sell-off on Monday, altcoins have bounced back once again putting up fresh optimism among investors. Among the top ten altcoins, Solana (SOL) has gained the most by 10% and is currently trading at $136. With this price pump, Solana has offset all its last week’s losses. Other popular altcoins like Cardano (ADA), dogecoin (DOGE), Toncoin (TON), are up anywhere up between 3-5%.

Altcoins Pump As BTC Dominance Drops

The Bitcoin price correction pushed the BTC price under $59,000 earlier today before recovering to $61,500 once again. However, with the Bitcoin dominance declining, altcoins have registered strong gains. In the last 24 hours, the Bitcoin dominance has tanked by 2% suggesting a strong liquidity flow happening into altcoins.

Also Read: Major Capital Shift to Altcoins Coming in Two Weeks

The “Total 3 Index” including Bitcoin and Ethereum, is holding strong at the support levels showing signs of potential trend reversal. This development has forced investors to question whether the alt season is about to begin.

Is the Alt Bottom Already In?

Renowned crypto analyst Michael van de Poppe highlighted a familiar pattern where altcoins usually follow the BTC downtrend but tend to bounce back once Bitcoin reaches its bottom. He noted that the Bitcoin pairs often show signs of a bottoming process before the USDT pairs. “We can see multiple signals that we might be reversing already, said Poppe, citing the current movement in altcoin against Bitcoin. The latest development in the wake of the current news of Mt. Gox’s Bitcoin repayment.

Along with Solana (SOL), Chainlink (LINK) has mirrored similar gains shooting up by 8% and currently trading at $14.09. On the upside, $15 remains a major hurdle to clear, however, technical indicators suggest that the bottom for LINK could be already in.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.