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Bitcoin’s dominance over the crypto market has remained steady for the past week, although it has been declining since the start of the year.
In order for altcoins to garner any type of immense momentum independent of that of BTC, it is imperative that the cryptocurrency cedes some of this dominance.
One popular cryptocurrency analyst does believe that this could soon happen, as he notes that the crypto market is now closer than ever to seeing the prophesied “altseason” that allows altcoins to post massive gains.
He explains that there are three primary factors that support this notion, and that it is imperative BTC’s dominance declines below 62% in order for this altcoin rally to ensue.
Bitcoin’s Crypto Market Dominance Remains Steady at 65%
Bitcoin has been largely outperforming smaller altcoins in the time following its mid-March meltdown.
This is clear while looking towards the growth its dominance has seen over the aggregated crypto market in the time following this bout of capitulation.
At the time of writing, Bitcoin’s dominance is sitting at 65%. This is around the level at which it has been hovering at over the past several weeks.
In late-February, BTC’s dominance hit its year-to-date lows as altcoins begin incurring massive momentum. This market-wide uptrend proved to be short-lived, as the turbulence seen across the traditional markets caused virtually all cryptocurrencies to decline.
This downtrend reached a boiling point on March 12th when Bitcoin plummeted from the $8,000 region to lows of $3,800.
The capitulation seen on this day proved to be more potent to altcoins than it was to BTC, causing the benchmark crypto’s dominance to rebound from lows of 60%, ultimately finding itself caught within an uptrend that led it to highs of 68% in early-May.
Here’s Why “Altseason” is Closer Than Ever
One analyst recently explained that he believes the proverbial “altseason” is closer than ever.
He justifies this controversial opinion by offering an analysis of BTC’s dominance, noting that it recently posted a bearish retest that suggests a significant decline is imminent.
The crypto analyst also went on to explain that it is about to break an 871 day uptrend, and that a decisive decline beneath 62% would mark the start of altseason.
“BTC Dominance vs Alts. This is by far the closest we have been from a technical standpoint to an alt season starting. 1. HH/HL structure has broken + bearish retest on dom 2. About to break an 871 day uptrend line on Dom 3. >62% would lead to alt pumps unseen for 3+ years,” he noted.
Image Courtesy of Pentoshi
It does appear that this breakdown is slated to occur in the coming two months as the apex of the triangle formation seen on the above chart fast approaches.
Featured image from Shutterstock.
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