Within the previous week, the dominance of Bitcoin over the cryptocurrency market has been steady despite its decline since the beginning of 2020. The dominance needs to reduce for altcoins to secure any kind of huge momentum that does not depend on Bitcoin.
According to a renowned cryptocurrency analyst, this may soon happen, noting that the cryptocurrency market is now closer than ever to seeing altseason, which allows altcoins to record huge gains.
In his explanation, three major factors support this outlook, and BTC’s dominance needs to decline beneath 62 percent for this altseason to emerge. Since the market crash in March, the performance of Bitcoin has been largely better than smaller altcoins. At press time, the dominance of BTC was 65 percent and it has been hovering around this level within the previous several weeks.
“$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 a 871 day uptrend line on Dom 3. >62% would lead to alt pumps unseen for 3+ years.”
The dominance attained 2020 lows in late February as altcoins started recording huge momentum. However, the uptrend within the cryptocurrency markets did not last as the turbulence observed across the traditional markets caused virtually all cryptos to fall. March 12 marked the peak of the downtrend when Bitcoin declined from the $8k zone to lows of $3.8k.
The March 12 capitulation caused BTC’s dominance to rebound from lows of 60% to highs of 68% in early-May. The analyst argued that Bitcoin posted a bearish retest recently, thereby suggesting an imminent remarkable fall. In his analysis, it is close to breaking an 871 day uptrend, and a decisive fall below 62 percent would signal the beginning of altseason.