Bitcoin (BTC) absorbs the entire size of the cryptocurrency market as it continues to grow. This leads to a decline in the altcoin market, which leads to increased pressure from sellers and reduced demand from buyers.

On October 30, researchers at Santiment discovered Bitcoin’s growing size and dominance, while Chainlink (LINK), Ether (ETH) and Binance Coin (BNB) struggled. They wrote:

#Bitcoin continues to be dominant, especially in volume. When comparing the other major blockchains in the last day, note that volumes in $ ETH, $ XRP, $ LINK and $ BNB decreased, while BTC levels remained high. ”
Traders believe, at least for the foreseeable future, that the so-called “alternative season” will not return, especially as Bitcoin surpasses altcoins.

When will altcoins recover?
Historically, during beef markets in the cryptocurrency market, Bitcoin experienced a rapid bullish trend. Altcoins followed after BTC rose to a local peak or full-time high.

Traders expect a similar picture in the current price cycle, and usually expect a rebound in altcoins in 2021. But until BTC stabilizes and completes the rally, traders do not see a suitable upward trend for the alt currency.

Since the lowest level on September 13, Bitcoin’s dominance index has risen from 56% to 63.4%, marking an increase of 7.4% in two months.

However, Michael Van de Pope, a full-time trader on the Amsterdam Stock Exchange, said an alternative season in the first quarter of 2021 is possible. He said:

Here the dominance is in red. We are still waiting for the superstructure in this connection until December. After that -> first quarter of the alternate season. ”
The problem with altcoins is the current dynamics of the cryptocurrency market. When bitcoin rises rapidly, altcoins fall when capital returns to Bitcoin again. If BTC falls, altcoins collapse, putting altcoins in an unstable position.

A merchant under the pseudonym “Donalt” said he had run out of air for several days. He said that if ETH does not recover against Bitcoin, a broader rebound in the altcoin market is possible. Dealer Note:

“I’ve been short of ETH for a few days now. However, ETHBTC is close to support. So there’s a good chance of a bounce here, if not, the whole altcoin market will fall sharply.”
Similarly, a trader known as “CryptoCapo” said that altcoin’s technical structure is not convincing in the near future. For traders, this makes Bitcoin even more attractive considering that it had strong momentum throughout October. He emphasized:

“Let’s be honest: it’s a violin that looks very bad, a fiddle that sounds decent, and it sounds good. I do not see any alternative coins that look very good at the moment. Choose wisely.”
The key to keeping bitcoins rally cool
As long as the Bitcoin price continues to rise rapidly and Ether lags, it is unlikely that an alternative season will come in the near future.

A strong sign of an alternative season is the consolidation of Bitcoin’s ongoing rally, followed by a breach of the Ethereum price.

Given that just a week ago, BTC / USD broke through the $ 13,000 resistance level, technically speaking, the trend in the Ethereum and Altcoin markets may continue in a few months.

Even now, however, capital in the alternative currency market has continued to shift towards Bitcoin. As Cointelegraph reported, decentralized exchanges or DEXs continued to reduce volumes in October. This indicates that demand for DeFi tokens is declining, probably due to Bitcoin’s dynamics.

Source: CoinTelegraph