- Bitcoin Dominance expected to fall to allow altseason peak.
- Analyst breaks down the movements of Bitcoin Dominance.
- BTC Dominance could revisit 71% for new BTC ATHs.
As analysts patiently await the peak of the altseason to arrive this Q1, Bitcoin Dominance is expected to fall. Some believe only the collapse of Bitcoin Dominance will allow altcoins the chance to pump and set new ATHs that will lead to the peak of this bull cycle’s altseason starting with a new ATH for Ethereum (ETH).
Historically, every Q1 following a Bitcoin Halving cycle has always led to the peak of that bul cycle’s altseason. This New Year’s Q1 is expected to do the same and several altcoins are showing bullish signals that could lead to major pump action for these altcoins. However, this peak may depend on the action of Bitcoin Dominance.
Could Bitcoin Dominance Revisit 71%?
Based on the post above, this analyst breaks down the Bitcoin Dominance chart’s movements. In detail, he expects BTC Dominance to top at 71%. Historically, every time Bitcoin Dominance broke into the 58-71% macro range, it would revisit 71%. So far, this has happened 3/3 times.
The meter tries to get as close to 71% before harshly rejecting into a strong downtrend to enable a strong altseason. Could Bitcoin Dominance top before 71%? This is worth examining how Bitcoin Dominance could get as close as possible to 71% but still slightly fall short. The Weekly timeframe offers this potential scenario whereby a declining black diagonal resistance is potentially developing.
Bitcoin Dominance Expected to Fall for Altseason Peak
Having said that the analyst says that BTC Dominance historically tended to upside wick beyond this trendline by 1.58% to 4.58%. So even with this declining trendline, it could still deviate to the upside beyond it to reach at least 67% and potentially up to 69%.
In conclusion, he says that what is important to remember is that it is not about trying to nail the absolute Bitcoin Dominance top but rather about understanding the core principle that the closer and closer Bitcoin Dominance gets to 71% in this cycle, the stronger the possibility of an extensive collapse in Bitcoin Dominance becomes to finally enable a strong altseason.
