Bitcoin Dominance 71%: Alarm or Altcoin Season?

Bitcoin Market Dominance

Bitcoin is leading the conversation about cryptocurrency, not just in terms of price but also in market presence. According to trader Rekt Capital, BTC’s dominance has surpassed 65%, a milestone that could create significant changes in the market. The big question is whether this is a warning sign for altcoins, or just the calm before the altcoin explosion?

Important Resistance Level

In recent months, Bitcoin Dominance has been steadily increasing, meaning Bitcoin is accounting for a larger portion of the total cryptocurrency market. This typically occurs when investors are focusing more on Bitcoin than other cryptocurrencies. A recent chart shows that Bitcoin Dominance is approaching the important resistance area of 71%.

Ethereum Loses Momentum Compared to Bitcoin

Currently, Bitcoin Dominance is at 65.38%, just 6% away from that threshold. The price of Bitcoin has risen to 97,000 USD, up 30% from this year’s lowest point. In contrast, altcoins are losing momentum. Ethereum, the second largest cryptocurrency, now only holds 7.5% of the market share, a sharp decline from over 22% peak in 2022.

Is the Altcoin Season Coming Soon?

However, if Bitcoin Dominance continues to rise, altcoins may continue to face difficulties. But if the level of 71% holds and creates a reversal, it could be the beginning of the altcoin season, a phase when smaller coins strengthen as Bitcoin cools down. Currently, the Altcoin Season index is at 29, indicating that the altcoin season still has a bit of time left. For this season to truly explode, at least 50 out of 75 altcoins need to outperform Bitcoin.

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