Bitcoin Dominance Drops 6%p... Analysis Suggests Upcoming Altcoin Season

Minseung Kang

Summary

Over the past month, Bitcoin dominance fell by 6.30 percentage points, breaking below the upward trendline that had persisted for three years.
It is analyzed that the strength of Ethereum combined with the weakness in Bitcoin's market share is driving capital movement from Bitcoin to altcoins.
An opinion was presented that if dominance is supported in the 60~61% range, the start of a strong altcoin phase could be delayed.

Bitcoin (BTC) market share (dominance) has dropped by 6.30 percentage points over the past month, breaking below a three-year upward trendline. In the market, there are observations that the strength of Ethereum and the weakness of Bitcoin dominance are marking the early stage of a capital rotation phase.

According to BeInCrypto, a virtual asset (cryptocurrency) media outlet, cryptocurrency market analyst Ash Crypto commented, "Bitcoin dominance has departed from its three-year trend," evaluating that "this is the biggest signal for an altseason and parabolic rise." Cryptocurrency trader Merlin analyzed, "Patterns similar to the 2021 altcoin surge are being reproduced."

Recently, Bitcoin dominance has shown a technical decline. As the three-year maintained upward trendline is breached, the possibility of a structural shift is being raised. At the same time, the Ethereum/Bitcoin (ETH/BTC) pair is showing relative strength, which is interpreted as capital gradually moving from Bitcoin into altcoins.

Some investors are also seen readjusting their positions, expecting high returns from mid- to small-cap altcoins.

However, there is also a view that if dominance is supported in the 60~61% range and rises again, the shift to altcoin strength may be delayed. Cryptocurrency analyst Crypto Candy explained, "If this demand zone remains intact, a full-fledged rise in altcoins could be postponed," adding, "It is important to closely observe the short-term price movements and capital inflows."

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