Can Bitcoin’s Dominance Trigger the Start of Altcoin Season?

  • Bitcoin’s dominance, which is a critical indicator of market impact according to the entire crypto market, has reached a significant turning point.
  • Bitcoin Dominance (BTC.D) shows the percentage value of Bitcoin’s market value compared to the total market value of the global crypto market.
  • Since May 2021, Bitcoin dominance has generally fluctuated between 39% and 49%. However, earlier this year, in early June, BTC.D briefly rose above 52% by breaking out of this range.

Bitcoin Dominance is at a critical point; the direction to be determined from now on may indicate the beginning of the altcoin season.

Bitcoin Dominance at a Critical Point

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Market observers closely monitor the competition between Bitcoin and its altcoin counterparts. Bitcoin’s dominance, which is a critical indicator of market impact according to the entire crypto market, has reached a significant turning point. This intersection has the potential to determine whether this year’s trend of Bitcoin outperforming altcoins will continue or whether the anticipated “altcoin season” is on the horizon.

Bitcoin Dominance (BTC.D) shows the percentage value of Bitcoin’s market value compared to the total market value of the global crypto market. This metric has gained significant attention due to its role in reflecting changes in market sentiment.

Since May 2021, Bitcoin dominance has generally fluctuated between 39% and 49%. However, earlier this year, in early June, BTC.D briefly rose above 52% by breaking out of this range, and then retreated to the 49% level in recent weeks. Successfully retesting this level could trigger a new bullish momentum for BTC against altcoins. On the other hand, falling below this level could trigger a longer-term decline towards 39%, which could mark the beginning of a new altcoin season.

What Do Bitcoin and Crypto Experts Predict?

A prominent Crypto YouTuber emphasizes the importance of understanding the broader market cycle before predicting the “altcoin season.” They claim that this pre-halving phase of the Bitcoin cycle may not be the most opportune time for altcoin investments.

YouTube highlights that a small retreat in Bitcoin dominance should not overshadow the overall upward trend and generally states that the best time for significant altcoin investments is when Bitcoin surpasses its all-time high. They stated, “We are currently in the pre-halving phase of the cycle, and it is generally not the best time to buy altcoins. Bitcoin dominance may decrease by 3%, but this is likely a small retreat before a larger upward movement.”

Benjamin Cowen sheds light on changing sentiments and shows that the potential of the altcoin market is not yet exhausted by saying, “In June, many people said that BTC dominance would never break 49% and that the altcoin season was about to begin. Now the same people are mocking because BTC dominance has dropped to 49%. The altcoin casino will remain open until all the money is gone.”

MN Trading’s CEO and founder, Michaël van de Poppe, clarifies the best time to invest in altcoins by examining historical formations. Van de Poppe states that the best opportunity arises approximately 8-10 months before the Bitcoin halving, during a period of low market confidence. Van de Poppe emphasizes that the performance of altcoins is usually based on Bitcoin pairs and they initiate rallies when least expected.

Van de Poppe highlights the cyclical nature of the market and refers to past examples where altcoin bull runs emerged approximately 252 days before Bitcoin halvings, using the low levels of the cycle in September 2019 and October 2015 for Ethereum as a reference.

The next two or three weeks will determine who is right and whether Bitcoin’s dominance will continue or if altcoins will move to become the preferred asset. Investors should closely monitor BTC.D as a result.

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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