BTC Price Today Dropped Drastically Under $55000, Invalidating Anticipations of Starting Altcoin Season

Bitcoin registered the worst weekly performance this year, it was in this zone 4 months before in February.

Bitcoin (BTC) price dropped drastically on Monday morning, slipping below the crucial support level of $55,000. This development seems to have put a damper on expectations of the start of altcoin season.

According to data from CoinMarketCap, BTC price today dropped by 4.36% over the last 24 hours, bringing the price to $54,308. This marks the worst weekly performance for Bitcoin this year, with the last time BTC was in this zone being four months ago in February.

This downtrend comes as a continuation of events that started unfolding after Bitcoin hit an all-time high of $73,803 on March 9. Several events throughout the year have had a major impact on the cryptocurrency market. These include the influx of Spot ETF, the liquidations, uncertainty around the US elections, and now the MT Gox repayments.

Despite the "greedy" events, it was the "feary" events that had a strong impact, causing the largest cryptocurrency to drive down 21% from its all-time high. Some notable altcoins also printed double-digit losses, putting a damper on speculations regarding the start of altcoin season.

Analysis

The Raw buying and selling pressure indicator shows how buying and selling pressure seems to find a neutral stage. A pullback from here expected

Bitcoin Dominance Adjusting In-Line

At press time, Bitcoin’s price is $54,308 with marketcap dominance of 55.20%, which had dropped from 53% last week after the BTC price slipped below the psychological support level of $57,000.

BTC’s dominance in the overall picture is under the uptrend line created at the beginning of the year. The BTC.D traveling below this line is crucial unless a pull black above this is done.

Bitcoin Domaince Chart

Altcoins Faded The Excitement

With the fall in Bitcoin dominance, it is anticipated that altcoins to fill the space but the drop in BTC price leads other altcoins to behave bearish. Some of the coins like Abritrum(ARB) price hit an all-time low in this turbulence.

In an analysis of 90 days performance of the Top 50 coins, only 7 of them have registered gains and only 12 of them have outperformed Bitcoin of which 4 see losses,

Generally, during the altcoins season to gear up, there needs to be at least 75% of altcoins need to outperform Bitcoin. In this case, the numbers are not too supportive.

This shows, that the market still Needs a little more observing to begin the altseason.

Top 50 Altcoin’s Performance. Source: BlockChain Center

So When will the Alt Season Start?

As seen on the Alt season index the reading stands at 24, with only a reading above 75 indicating a potential start of altcoin season.

Below 25 is considered to be the Btcoin season.

Altcoin Season Index. Source: BlockChain Center

Concerning the last movement, it took 3 months to shift from below 25 to above 75. We can expect the altcoin to start in early of mid-October.

The above is the detailed content of BTC Price Today Dropped Drastically Under $55000, Invalidating Anticipations of Starting Altcoin Season. For more information, please follow other related articles on the PHP Chinese website!