Stagnation in the uptrend! Analyst Willy Woo claims the altcoin craze is over, and Bitcoin will fill the CME gap.

Bitcoin has dropped nearly 10% since hitting a yearly high of $12,468 on the 17th, with a recent low of $11,117 on the 25th. Renowned analyst Willy Woo had warned of the retracement risk two weeks ago, suggesting that the altcoin season has come to an end.

Altcoins Plunge More Sharply

Comparing to its peak on the 17th, Ethereum has dropped from 446 to $37 before the deadline, a decrease of about 16%. Cryptocurrency analyst Willy Woo believes that the trend of altcoins plummeting more than Bitcoin will continue in the coming weeks, leading to an increase in Bitcoin's dominance. He tweeted on the 9th of this month:

A divergence in the bull market has appeared, and Bitcoin's dominance is expected to surpass altcoins in the coming weeks, indicating a potential reversal of the peak through observing changes in trading volume.

He further explained today: "Two weeks ago, I mentioned that Bitcoin's dominance percentage might reverse, and this situation may now be unfolding. In other words, while Bitcoin retraces, altcoins are experiencing a more significant drop, leading to an increased dominance of Bitcoin. If you are still trading altcoins in the coming weeks, please be cautious."

In fact, the rise of altcoins has been ongoing for some time, with Bitcoin's dominance decreasing from 69.2% at the beginning of the year to around 59.2% currently. Regarding the recent market decline, Woo pointed out the daily decrease in trading volume, indicating that the upward trend of the past few months is coming to an end. He stated:

It is evident through the trading volume on exchanges that there are some underlying sell-offs taking place.

What Other Indicators Are Emerging?

Woo mentioned the "gap" in CME Bitcoin futures. On February 10th of this year (Monday), Bitcoin experienced a rapid three-minute drop of $300, breaking below $10,000 to reach $9,756.

Specifically, as CME does not operate over the weekend and Bitcoin closed around $9,850 on Friday, the "weekend surge" in Bitcoin caused a "gap" to appear when CME opened on Monday, with the gap aligning with Bitcoin's price after the drop.

Coincidentally, there is currently a CME gap around $9,700, according to Woo, who believes that Bitcoin is testing support at $10,900, and if it falls below, it will come to $9,700 to fill that gap.

Despite Woo's somewhat pessimistic view on the market trend, Bitcoin's mining difficulty increased by 3.6% on August 24th, reaching an all-time high. Miners seem to be optimistic about Bitcoin's performance in the second half of the year. Based on the trends in hash rate and mining difficulty, miners are unlikely to sell Bitcoin in the short term.