The co-founders of crypto analytics firm Glassnode outline two key conditions that could trigger altcoin rallies just in time for Christmas.
Jan Happel and Yann Allemann, who use Negentropic on the social media platform X, tell their 63,300 followers that altcoins are poised to outperform Bitcoin (BTC) in the next two weeks.
The co-founders of Glassnode look at the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total crypto market capitalization that belongs to Bitcoin. The duo share a chart suggesting that BTC.D has turned bearish, opening the doors for altcoins to rise in value faster than Bitcoin.
“Bitcoin’s dominance has been rejected at the uptrend line – is this the setup for a Christmas rally in altcoins?
To make this happen:
Bitcoin needs to consolidate above $100,000. A period of sideways movement could allow altcoins to prepare for a breakout.
The second half of December and the end of the year could bring fireworks to the altcoin market. Are you ready?
At the time of writing, BTC.D is hovering at 56.94%, still below the duo’s trendline.
Looking at Bitcoin itself, Negentropic says that BTC has so far failed to launch a massive surge above $100,000 due to selling pressure from long-term holders, entities that have held their BTC stacks for more than 155 days.
Glassnode executives believe that long-term holders are running out of coins to unload, putting Bitcoin in a position to rise in early 2025.
“The selling pressure from long-term holders continues.
Key insight: Long-term holders (LTHs) have reached their lowest holdings of the year, marking the largest outflows in 2024.
Triggers: Back-to-back liquidations contributed to significant sales, in addition to the year-end profit-taking season.
Looking ahead: The start of the new year could mark the end of this selling streak, paving the way for a possible shift in market dynamics.
How will this trend impact Bitcoin at the end of 2024?”
At the time of writing, Bitcoin is trading at $101,893.
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