Altcoins ETH and SOL Gain Ground Against Bitcoin’s Struggle on Shorter Timeframes
Bitcoin, facing resistance around $43,000 on December 8, experienced a setback from its recent highs of $44,372 as Ethereum (ETH) surged to $2,365, stealing the spotlight. During this period, ETH and Solana (SOL) exhibited strength, with ETH/USD showing a 7.6% increase in approximately 24 hours, while Bitcoin’s consolidation continued.
Market observers, including analyst Matthew Hyland, highlighted Bitcoin’s diminishing dominance in the overall crypto market cap, describing the recent developments as a potential “false breakout.” Bitcoin dominance, which reached 55.26% on December 6, the highest since April 2021, faced a crucial level at 54.35%, according to Hyland. Currently standing at around 53.9%, Bitcoin’s struggle for dominance opened opportunities for major altcoins.
ETH/USD reached $2,392, experiencing a modest correction, while SOL/USD hit $72.88, its highest since May 2022, as investors grew bullish on triple-digit figures in the future.
Research firm Santiment suggested that fear, uncertainty, and doubt (FUD) surrounding an altcoin breakout could benefit Bitcoin, potentially propelling it to $50,000. Traders expressed concerns about a possible bull trap in the crypto markets, but as Bitcoin paused, Ethereum and other altcoins gained momentum.
Despite the market correction, some Bitcoin proponents, such as trader Credible Crypto, remained optimistic, interpreting the current price decrease as an accumulation phase before the “next leg up.” However, others anticipate a more significant correction, suggesting the market could revisit $30,000 or even approach $20,000 before achieving new all-time highs.
