The co-founders of the crypto analytics firm Glassnode are outlining two key conditions that could spark altcoin rallies just in time for Christmas.
Jan Happel and Yann Allemann, who go by the handle Negentropic on the social media platform X, tell their 63,300 followers that altcoins could be on the verge of outperforming Bitcoin (BTC) in the next two weeks.
The Glassnode co-founders are looking at the Bitcoin Dominance (BTC.D) chart, which tracks the percentage of the total crypto market cap that belongs to Bitcoin. The duo shares a chart suggesting that BTC.D has flipped bearish, opening the doors for altcoins to rise faster in value than Bitcoin.
“Bitcoin dominance has been rejected at the upward trendline – is this the setup for a Christmas rally in altcoins?For this to happen:
Bitcoin needs to consolidate above $100,000. A period of sideways movement could allow altcoins to gear up for a breakout.
The second half of December and year-end could bring fireworks to the altcoin market. Are you ready?”
At time of writing, BTC.D is hovering at 56.94%, still below the duo’s trendline.
Looking at Bitcoin itself, Negentropic says BTC has so far failed to launch a massive surge above $100,000 due to the selling pressure coming from long-term holders, entities that have held their BTC stacks for more than 155 days.
The Glassnode executives believe that long-term holders are almost out of coins to unload, putting Bitcoin in a position to ascend at the start of 2025.
“Long-Term Holders Selling Pressure Continues.
Key Insight: Long-Term Holders (LTHs) have hit their lowest holdings of the year, marking the largest outflow in 2024.
Triggers: Back-to-back liquidations contributed to significant selling, alongside the year-end profit-taking season.
Looking Ahead: The start of the new year may signal the end of this selling streak, setting the stage for a potential shift in market dynamics.
How will this trend affect Bitcoin in the end of 2024?”
At time of writing, Bitcoin is trading for $101,893.
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