The dominance of trading volume of altcoins has increased to 50% and it wants to break above the level, which may raise concerns for Bitcoin and 3 altcoins.
Increase in trade volume
Just prior to last year’s big November drop, there was an equally increasing dominance of altcoin trading volume. The dominance of the trading volume of altcoins has risen to 50% and is looking to break above the level, which raises concerns among analysts. The pattern is mainly associated with an approaching market-wide decline. CryptoQuant certified author ‘Altcoin trading dominance 50%. ‘This is VERY CONCERNING’. Also, Diveonchain founder JA Maartun points out the alarming metric while warning of an impending drop in the near future.
Maartun shared a chart from the crypto chart that provides the Diveonchain service and used it as a support for his analysis. The data in the chart reveals past cases where altcoins dominate the trading volume by 50% and above. Most of the time, the price of BTC took a big dip and the rest of the markets followed suit. The chart reveals that the increase in altcoin trading volume dominance just preceded the massive drop in November last year. The analyst also noted that altcoins are still very popular on exchanges. Maartun highlighted the alarming pattern on November 1 last year, just days before the market crash from FTX. The dominance of altcoins in trading volume has increased to 55%.
Bitcoin is weak right now
In the days leading up to November 7, the CryptoQuant author disclosed numerous warning signs regarding the increase in altcoin trading volume and the dominance of market sellers. According to him, the move in the bearish market is alarming. Alongside Maartun, crypto behavioral analytics platform Santiment has recently highlighted a similar pattern. According to Santiment, the minor rally recently conceived by altcoins since Jan. 1 has drawn the attention of investors to the market. This is evidenced by the increase in social denotation of terms such as ‘buy’, ‘buy’, ‘bottom’ and ‘bull’.
According to Santiment, historical data reveals that the rise in these terms shows that as enthusiasm among investors increases, so does FOMO. The platform advised investors to ‘step cautiously’. Meanwhile, Stock-to-Flow Model Builder PlanB recently announced that BTC is currently weak despite its modest gains and asked investors to be patient. cryptocoin.comAs we mentioned, BTC is traded at $ 16,837.