Matthew Hyland has recently become more cautious about Bitcoin (BTC) price movements, as altcoins surge and there is a risk of the latest uptrend being “rolled over”.
The analyst and social media commentator shared his views on the Web 3.0 platform X (formerly Twitter) on Dec. 9, noting the key features of this new technology and the potential of Web 3.0 data ownership, cryptocurrencies list and tokens.
Bitcoin Dominance May Breach Key Level
Bitcoin continued its bullish performance on Wall Street, as BTC/USD reached a new 19-month high of $44,729 on Bitstamp on Dec. 8. Prices subsequently dropped back below $44,000.
However, according to Hyland, there could be a more worrying sign that this bull run may be short-lived, and that is the share of the overall crypto market cap held by Bitcoin.
“Dominance is rolling over as per the bear divergence that was noted. Has given back all the gains from the move up the other day,” he wrote in the X post.
The dominance of Bitcoin in the crypto market had spiked to 55.26% on Dec. 6, its highest level since April 2021. But this figure had dropped to 53.4% at the time of writing.
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Altcoins extend intraday gains
Observers of the market think that a shift in the dominance of Bitcoin could trigger a surge in altcoins, which is known as “altseason”.
This appeared to be the case on the day, with the top 10 cryptocurrencies led by Cardano (ADA) and Avalanche (AVAX), which both increased by 22% in 24 hours.
Ether (ETH), the largest altcoin, was flat but still had a 12% gain over the past week. ADA and AVAX topped the list with gains of over 50%.
“A 2% drop in bitcoin dominance and alts went nuts today,” commented popular trader Jacob Canfield to X subscribers on Dec. 6.
The total altcoin market cap was up 2.4% on the day, with December’s month-to-date gains of 18.4%.
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