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The Bitcoin dominance has now fallen below 60% for the first time in six months. But despite altcoins moving to grab more market share, this high dominance has remained a hindrance for the altcoin market. Given this, the Bitcoin dominance is expected to continue to determine where the crypto market will be headed from here, and by extension, when the altcoin season will begin.
How Bitcoin Dominance Is Driving The Market
As the crypto market struggles to find its footing in an ever-changing macro landscape, Bitcoin’s dominance continues to put pressure on the broader altcoin market. Crypto analyst Luca points this out in an analysis that focused on the Bitcoin dominance and how it is driving the market recently.
Related Reading: Shiba Inu To Explode 160% To $0.000035? Machine Learning Algorithm Predicts TimelineLuca points out that the Bitcoin dominance had actually dropped below a notable level for the first time this cycle. This is the Weekly Bull Market Support Band, and the last time that the dominance was below this level was back during the last cycle. In addition to breaking below this support band, the Bitcoin dominance also happened to have retested this same level as resistance.
Historically, such a move is not bullish for the price, but the bearishness tends to play out over a longer period of time compared to the short-term. As Luca explains, this is because it signals that risk appetites are high once again, and market makers tend to use this as a distribution tool.
Source: XAmid this, the crypto analyst expects that attention will begin to shift as investors rotate out of Bitcoin. Naturally, this rotation would lead to a move into altcoins, which currently have a higher margin for profits compared to Bitcoin, which is trading close to all-time highs.
Altcoin Season And The Dominance Bottom
Once the rotation from Bitcoin to altcoins begins, then it could signal the start of the altcoin season. This would be characterized by a massive drop in the Bitcoin dominance as large-cap altcoins begin to rally and steal market share. Then, the wait for the Bitcoin dominance bottom begins.
Related Reading: Ripple’s XRP Cannot Replace SWIFT? Expert Says This Crypto Is A Better FitLuca points out that this phase will only end once the Bitcoin dominance finds a bottom. As for where the bottom might lie, the crypto analyst points to the 47%-48% level as the possible bottom. Once this happens, it would signal an end to the altcoin season as Bitcoin begins to take control again.
Dominance moves below 60% | Source: BTCUSD on TradingView.comFeatured image from Dall.E, chart from Tradingview.com
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Bitcoin Dominance Falls Below Critical Level For The First Time This Cycle, Altcoin Season Coming? | Bitcoinist.com
How Bitcoin Dominance Is Driving The Market
As the crypto market struggles to find its footing in an ever-changing macro landscape, Bitcoin’s dominance continues to put pressure on the broader altcoin market. Crypto analyst Luca points this out in an analysis that focused on the Bitcoin dominance and how it is driving the market recently.
Related Reading: Shiba Inu To Explode 160% To $0.000035? Machine Learning Algorithm Predicts TimelineLuca points out that the Bitcoin dominance had actually dropped below a notable level for the first time this cycle. This is the Weekly Bull Market Support Band, and the last time that the dominance was below this level was back during the last cycle. In addition to breaking below this support band, the Bitcoin dominance also happened to have retested this same level as resistance.
Historically, such a move is not bullish for the price, but the bearishness tends to play out over a longer period of time compared to the short-term. As Luca explains, this is because it signals that risk appetites are high once again, and market makers tend to use this as a distribution tool.
Altcoin Season And The Dominance Bottom
Once the rotation from Bitcoin to altcoins begins, then it could signal the start of the altcoin season. This would be characterized by a massive drop in the Bitcoin dominance as large-cap altcoins begin to rally and steal market share. Then, the wait for the Bitcoin dominance bottom begins.
Related Reading: Ripple’s XRP Cannot Replace SWIFT? Expert Says This Crypto Is A Better FitLuca points out that this phase will only end once the Bitcoin dominance finds a bottom. As for where the bottom might lie, the crypto analyst points to the 47%-48% level as the possible bottom. Once this happens, it would signal an end to the altcoin season as Bitcoin begins to take control again.