Bitcoin price is slowly approaching its all-time high. This also means that the total market capitalization of the ecosystem will improve.

In fact, smart sellers (buyers below and sellers above) have largely exhausted their selling pressures in the last few months of falling prices.

Since Bitcoin holds its price above $ 50,000, the possibility of a “running-at-speed” situation is not ruled out.

BILLIONRate tWill Bitcoin’s Declining Dominance Boost Altcoin Season?

Source: trade view

For the most part, the altcoin rally took place as Bitcoin consolidated in a higher range after the rally. Now, if you look at Bitcoin’s Dominance Chart (BTC.D), it is ready for another potential trend reversal.

If BTC.D reverses down, it does not mean that the price of BTC is falling. It just means that other altcoins are increasing their market cap faster. In 2021, Bitcoin dominance will fall below 50% for the first time since April 1, 2019. At that time, other altcoins took advantage of the opportunity and hit all-time highs (ATHs) themselves.

Given the possibility of a BTC.D reversal in the market, altcoins with larger market caps could step back into action. This drives certain assets up 5 to 10 times in the market, especially when Bitcoin is holding up above $ 50,000.

Which altcoin should I choose??

Certain rallies during the altcoin season are not properly supported by bullish on-chain indicators (e.g. meme coins).

Meanwhile, certain tokens are undervalued and some top assets are putting new ATHs after a major development or announcement.

Source: trade view

CELO and NEAR are two of the assets that have been the subject of much discussion lately as they both experienced strong market conditions. Both Layer 1 networks showed high on-chain activity. In the past few weeks, they peaked at $ 10.95 and $ 11.88, respectively, with new ATHs.

However, both are still outside the top 30. This increases the likelihood that their market will continue to grow as CELO has made more transactions on average over the last 30 days than coins like DOT and AXAV.

Regarding Polkadot, the platform is ready to launch its first Parachain auction. Also, the interactive features of Cosmos will soon be implemented for many practical applications.

These type of use cases will improve the token’s ability to achieve higher capitalization if the market shifts in favor of altcoins.

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