• Bitcoin’s 30-day active supply has cooled, hinting at reduced investor activity.
• Altseason speculation grows as Bitcoin nears a potential peak.
• Market patterns mirror previous cycles, raising caution for the coming months.

Alphractal highlighted the latest trend in Bitcoin’s 30-day active supply. This metric tracks the number of unique coins that have moved at least once over the past month. It works as a pulse check on market interest, revealing when investors are actively circulating their holdings.

A rising trend often signals heightened participation, where new money enters and investors shift positions in response to market excitement or fear. Historically, these moments of strong activity have aligned with major price tops and bottoms. Peaks were seen when investors were gripped by greed or panic, pushing large volumes of coins into motion.

Now, the data records a slowdown. Circulation has eased up with the active supply, meaning that the activity is less than the frenzy that was seen in the months before. This movement records signs of more even conditions with traders that are not anxious to move their coins. This kind of slowdown creates space for the market to accommodate, with the next movement of Bitcoin remaining unpredictable.

Bitcoin Dominance Decline Sparks Altseason Speculation

Another market commentator, Mags, pointed out Bitcoin’s trends of dominance. The chart of dominance pits Bitcoin’s percentage of the aggregate crypto market cap versus altcoins. Historically, a sharp decline in dominance has often aligned with Bitcoin reaching its final rally stages before a cycle peak.

This was repeated in 2017 and 2021. Each time, Bitcoin registered one final upward surge while dominance dropped precipitously. In this period, altcoins also experienced massive rallies, generating what traders commonly refer to as “altseason.” The euphoria was short-lived, though, since both Bitcoin and altcoins subsequently crashed into long bear markets once dominance hit its lows and began trending upwards.

Current setup shows initial similarities. As Bitcoin nears a possible peak, declining dominance is generating speculations that the coming altcoin rally is near. Traders are keenly observing if that is responsible for the final leg up before conditions switch into reverse.

Also Read: Bitcoin Whales Add 16,000 BTC as Retail Traders Exit at Losses: Report

Crypto Market at Crossroads as BTC Activity Declines

The overlap between reduced Bitcoin supply activity and shifting dominance suggests the market is entering a critical phase. Lower movement of coins indicates that investors are holding back, while the dominance trend hints at an altcoin breakout if history repeats.

If such signals are valid, the next couple of months will determine the end of the ongoing cycle. Traders are considering this moment a last chance at significant gains prior to an extended decline. The two gauges indicate a fine balance, with the next conclusive move by Bitcoin determining the direction of the overall crypto market.

Also Read: Bitcoin Eyes $118,000 Breakout, Poised for Explosive Rally