Bitcoin has dominated the cryptocurrency market for the majority of 2019, but as we approach the end of the year, many analysts are predicting the altcoin market could soon surge in value.
The past 12 months have been largely positive for Bitcoin, with the price an impressive 126% higher (in US dollar terms) than it was at the beginning of the year, thanks to a strong rally that kicked off in April.
Most altcoins, however, have struggled in comparison. Ethereum is currently just 33% up from the start of the year, while Ripple (XRP) is down 28%, according to CoinMarketCap data.
Theories have been flying left, right, and centre that an alt-season could be just around the corner, but so far, this has failed to come to fruition.
Now, however, there are signs things could be about to change.
One of the key indicators suggesting we could be in line for an altcoin rally in 2020 is a fall in Bitcoin dominance. The Bitcoin Dominance Index is a metric traders use to get an insight into Bitcoin’s value relative to that of the broader digital currency market. Provided by CoinMarketCap, it measures Bitcoin’s market capitalisation compared to the overall crypto market.
Many analysts believe falls in Bitcoin dominance, combined with drops in Bitcoin’s price, act as a strong indicator for altcoin gains. Since the end of 2018, Bitcoin dominance has grown from 30% to more than 60% and, at its peak, neared 70% this quarter.
Now, however, Bitcoin dominance has dropped to 66% and its price has also fallen.
An analyst called Beastlyorion recently tweeted that Bitcoin’s dominance of the overall crypto market is testing support at around 66%. If it breaks, he expects altcoins to “rally harder than you ever could have imagined”.
Altcoin market reaches its bottom
The Bitcoin dominance theory is backed up by claims from other crypto analysts that long-term charts suggest the total altcoin market has bottomed out.
Although 2019 started with both Bitcoin and…