"Altcoin Dominance Plummets as Memecoins Squeeze Liquidity"

As we approach 2025, the crypto market continues to display volatility, with the prices of most altcoins struggling to secure a range above pivotal resistance levels. Despite this, traders remain optimistic about the crypto markets, driven by the increasing demand for Bitcoin and Ethereum.

Following the Bitcoin halving, it was anticipated that Bitcoin would surge and mark new highs, followed by a strong Altseason. While Bitcoin prices did surge above the much-awaited milestone at $100K and hit an all-time high above $109K, altcoins largely decoupled from the BTC price rally. Data from Glassnode suggests that the altcoin market cap decreased by more than $234 billion in the past fortnight, indicating a significant decline in altcoin dominance.

The memecoins have squeezed out most of the liquidity, leaving the top altcoins struggling to grab some. Consequently, the altcoin market dominance has been declining since the start of 2024, testing June 2023 lows and the lowest point in the past 4 years. This trend is reminiscent of the last cycle, although the decline was quicker and more severe this time around.

Historically, the big move up in altcoin dominance did not happen until 2021, which was the post-halving year. By then, BTC had traded up 50% to 100% from its previous all-time high and continued to head higher from there. However, the current market dynamics appear to be much more diverse, with altcoins performing worse compared to the previous cycle.

Despite the recent market conditions, a popular analyst, Moustache, does not believe that the Altseason is cancelled. The total market capitalization, excluding Bitcoin and Ethereum, is trying to heal its wounds after a week of record liquidation. While the range holds above $850 billion, which makes it an important range to hold, the market capitalization including Ethereum appears to be more weaker. Nevertheless, the altcoins do not seem to be stronger as they have not yet demonstrated massive recovery.

The total market capitalization excluding BTC is staying strong above the trend line, which has turned into a strong support. After breaking above the descending broadening wedge, the levels are correcting and hence a rebound seems to be inevitable. The analyst believes the upcoming Altseason could