One closely watched analyst believes that crypto markets are preparing for a period in which altcoins significantly outperform Bitcoin (BTC).
In a new strategy session, trader Michaรซl van de Poppe tells his 163,000 YouTube subscribers that Bitcoin's dominance chart (BTC.D) has probably peaked for now and looks set to turn.
The BTC.D chart tracks how much of the total crypto market capitalization belongs to the crypto king. A descending chart of BTC.D suggests that altcoins are generating gains at a faster rate than Bitcoin itself.
According to Van de Poppe, Ethereum (ETH) The recent Shanghai update, which now allows participants to withdraw their coins, is probably the heralding sign of a new alt season.
โIf we look at the dominance of Bitcoin, we could say that we have been reaching the crucial level at 50 (percent)โฆ I was thinking maybe we could go a little higher, but then I realized that the update took place. Shanghai, which I didn't include in the previous update.
I think we are on the verge of having a correction in the Bitcoin dominance. I think we are topping out here, and that will result in a bit of a dip in the next period. Like last time during the Ethereum merger, it was bottom. Now, it's probably the peak."
Van de Poppe believes that his long-awaited alteason could last a few months before Bitcoin catches a breather.
โSo, we have a window of at least a few months where we'll do well as far as altcoins go before Bitcoin corrects itself, which means I'm not inducing shorts at all. I think buying the dip and the longing is the way to go."
At time of writing, the BTC.D chart sits at 47.16%, below the key Van de Poppe level.
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