Right now there are some altcoins that are showing greater bullish signals than bitcoin.
This is revealed by Santiment, who points out that bitcoin has dominated the crypto markets in recent weeks of distress, but this momentary dominance could end.
As #Bitcoin has dominated headlines and markets during this past week's continued market-wide decline, many #altcoins are appearing to show #bullish divergences. The higher the green bar, the higher the ratio of non-deposit activity is vs. deposit activity. pic.twitter.com/BldEGz876l
— Santiment (@santimentfeed) June 25, 2021
In fact, the price of bitcoin has held up better than many altcoins in recent weeks, so much so that since its low peak on 19 May it has done nothing but lateralize, fluctuating between $30,000 and $40,000, with rare exceptions, for more than a month in a row.
By contrast, the price of many altcoins has continued to depreciate, such that BTC’s dominance has grown from its annual low of 38% on 19 May to its current 45%, in particular with almost constant growth over the past two weeks.
Ethereum’s dominance in the last two weeks, on the other hand, has fallen from 18% to 16%, clearly showing that at this stage BTC has performed better than ETH and many altcoins.
However, some indicators suggest that this trend may soon change.
Why altcoins may be rising relative to bitcoin again
In particular, Santiment calculated the ratio of many altcoins to non-deposit and deposit assets on the blockchain.
This ratio shows that recent deposit activity for some cryptocurrencies is well above the average of the last 90 days.
This is a parameter that also varies greatly from coin to coin, so that for example for Bancor it is very high, while for Raden Network it is very low.
Overall it is impossible to determine a general trend because there are many altcoins with positive values of this parameter and many others with negative values, but there are several which have very high positive values at the moment.
Therefore not all altcoins are giving bullish signals, but at the same time, there are many that are.
It is possible that this means that not all altcoins are ready to rally in the crypto markets, but there are several that are.
For example, Santiment points out that sentiment on Twitter towards Ethereum has fallen to its lowest level since even June 2018, partly due to the fact that in times of trouble interest in crypto markets tends to shift to Bitcoin.
It also points out that FUD (Fear, Uncertainty and Doubt) is actually still high with regard to Bitcoin as well, and traders fear that the price of BTC could go back below $30,000 again.
However they add:
“Markets move in the opposite direction of crowd expectation”.
In other words, the situation remains complex, and difficult to read, but there aren’t only bearish signals. Right now there is probably no predominance of bearish or bullish signals, but the situation is changing from what it has been for the past two weeks.