the Altcoin season It could be closer than ever, as Bitcoin dominance has entered a historically favorable phase for alternative digital assets. According to a cryptocurrency analyst, altcoin season has officially entered the 140-day golden window, a period characterized by… Significant growth of altcoins. This phase is driven by the shift in Bitcoin dominance fueled by the change in investor interest from the leading cryptocurrency to other assets.
Altcoin season is ready for an epic rush in the first quarter of 2025
said one market expert known as the “Crypto Bullet.” open On Cryptocurrencies other than Bitcoin Rising as Bitcoin dominance declines. Earlier in November 2024, it was done Bitcoin dominance It peaked, indicating that the leading cryptocurrency was controlling a larger portion of the market at the time.
This rise in Bitcoin dominance coincided with its rise to all-time highs, as massive demand and dwindling supply for the cryptocurrency led to… Prices rise above $104,000.
Despite the rally last month, Crypto Bullet revealed that Bitcoin dominance faced rejection at the 0.618 Fibonacci retracement level. This level corresponds to A Bitcoin dominance by 60%It indicates that a trend reversal may occur after a rejection.
Crypto Bullet revealed that historically, Bitcoin dominance takes about 20 weeks to reach the bottom after the top. As of writing, the market is in week five of this 140-day cycle, with only 15 weeks to go. Bitcoin dominance is declining further.
Over the next 15 weeks, the analyst expects Bitcoin’s dominance to collapse, anticipating a sharp decline from its current level of around 58%, as shown in the chart. This decline often signals a shift in investor demand and interest in Bitcoin to altcoins, leading to… The expected start of the altcoin season.
Based on the chart, the analyst suggests that by April 7, 2025, marking the end of the 140-day cycle, Bitcoin’s dominance is expected to increase. You reach the bottom Close to 40%. If Bitcoin dominance enters this expected collapse phase, Crypto Bullet has predicted that the first quarter (Q1) of 2025 will be “epic.”
Understanding Bitcoin dominance
Bitcoin dominance represents the percentage of the total cryptocurrency market capitalization attributed to Bitcoin. This key technical indicator is usually used to measure investor sentiment and predict market trends.
When Bitcoin dominance declines, it indicates that capital is flowing out of Bitcoin and into other alternative digital assets, indicating that Investors have become more risk-taking And explore alternative currencies. In contrast, when this dominance is high, Bitcoin holds a larger portion of the market capitalization, as investors generally focus more on it than on other cryptocurrencies.
Severe Decrease in Bitcoin dominance It often indicates that altcoin season may be on the horizon. The last significant altcoin season was seen during the previous rally in 2021. At that time, Bitcoin’s dominance declined significantly, followed by a sharp decline in its price.
Featured image created with Dall.E, chart from Tradingview.com
Comments are closed, but trackbacks and pingbacks are open.