Bitcoin price is nearly trading at its former all-time high, and at a price point that feels unreachable for many to own a full coin, interest has again turned toward altcoins. BTC dominance has sunk as a result, and at the same time, the dollar is breaking down from support.
The scenario in the past provided the perfect storm set up for the greatest altcoin season ever. Is this incredible burst of wealth generation about to strike for a second time?
Ethereum, XRP, And Litecoin: Major Altcoins Explode As BTC Dominance And The Dollar Fall
During the month of November, Bitcoin set a higher high over its 2019 peak and surged another $5,000 beyond it. The rise up sucked capital out of altcoins, but now that full-blown FOMO has returned to crypto, profit-taking from BTC into alts is causing major altcoins to rip.
Crypto is back to a bull market, and while there will be strong corrections along the way, the direction for the mid-term is likely upward.
Related Reading | Here’s Why Crypto Analysts Are Divided Over The Future Of Altcoins
Altcoins have had phases of overperformance compared to Bitcoin in the past, but what makes this time special, is due to the DXY dollar currency index dropping at the same time.
In the chart below, only one other time did BTC dominance and the DXY suffer an extended crash at the same time. The result was the 2017 crypto bubble and the greatest alt season ever. Is history about to repeat?
The total altcoin market cap soared the last time BTC dominance and the DXY fell together | Source: CRYPTOCAP-TOTAL2 on TradingView.com
Why Expensive Bitcoin And A Weakening Greenback Sparks Alt Season
Beyond the technicals and the charts of the two most dominant forces altcoins contend with via trading pairs clearly showing the same set up as…