- Bitcoin dominance has surged to 67% and is testing critical resistance at 71%.
- If Bitcoin’s dominance hits 71%, altcoins may experience stagnation and price corrections.
- A decline in Bitcoin dominance could trigger a significant altcoin season and price increases.
Bitcoin has entered key levels of dominance, reflecting changes in market behavior. The chart that made the rounds recently shows Bitcoin’s dominance pattern, revealing periods of possible decline followed by periods of altcoin activity. As Bitcoin continues to show strength, many traders are going to be asking: Will Bitcoin’s dominance continue to climb, or will altcoins once more take the forefront?
Bitcoin Dominance: An Upward Trend
Bitcoin’s dominance in the market has increased tremendously over the last few months until this point. It shows a moderate rise above 67% today, far recovering from the lows registered in 2023. This rise follows a typical pattern- consolidation, fall in dominance, and again return to dominance by Bitcoin. Analysts argue this movement could be heralding the onset of another Bitcoin dominance, one that could ascend to 71%.
According to the chart, Bitcoin’s dominance has always passed through fairly recognizable cycles punctuated by periods of consolidation. During these cycles, Bitcoin’s market share becomes steady enough for the likes of Ethereum and Solana to flourish. In most cases, after this consolidation has sounded the alarm for the resurgence of Bitcoin’s dominance, altcoins find their own market share steadily eaten away.
Bitcoin, by this trend, is presenting itself to the challenge at resistance levels of 71%, a level it has been unable to break through in the few previous years. Should Bitcoin overcome this level, it would trigger the next stage of dominance, alongside the price increase and altcoin market stagnation. Failing to break through these levels again will lead to a drop in dominance and an altcoin rally.
Altcoin Season Abuzz with Bitcoin
This chart further indicates the presence of “altcoin seasons,” which tend to come after periods of Bitcoin dominance. After consolidation, an ensuing decline in Bitcoin dominance heralds a solid rally in altcoins. This cycle has been observed multiple times in the past and is a representation of the dynamic relationship between Bitcoin and altcoins.
During each altcoin season, with market dominance diminishing by as much as 37x, altcoins have then claimed larger portions of the market. This has been the time when these low-market-cap coins witnessed strong upward movement and often outperformed Bitcoin in percentage gains when altcoins thrived as Bitcoin dominance declined. As Bitcoin resumes its dominance, corresponding corrections tag along with these altcoins.
The chart shows this cycle vividly, clearly pointing to declining Bitcoin dominance and increasing interest in altcoins. This pattern hints at the possibility that altcoin traders may be waiting for now, with a keen eye on periodic corrective phases in Bitcoin dominance, which may rally altcoins in a similar massive price surge.
