- Bitcoin’s dominance hits 60%, raising analysts’ speculation of an incoming altcoin season.
- Historical trends hint at potential altcoin surges after Bitcoin peaks and enters price discovery.
- Analysts see Bitcoin’s 60% dominance as a resistance level, hinting at a possible altcoin rally.
Bitcoin’s dominance over the crypto market is now 60%, a level that has caught the attention of analysts who believe this might be the start of a new “alt season.” As Bitcoin takes a larger share of the crypto market, questions around its impact on altcoins and the likelihood of an upcoming altcoin bull run are gaining momentum.
As noted in a podcast by Lizard Lab, 60% of the crypto market capital is now flowing into Bitcoin. Altcoins are seeing limited traction despite recent institutional interest in the sector.
This interest has driven Bitcoin’s market dominance to new highs, leaving altcoins undervalued in the crypto market. Unlike Bitcoin, whose dominance has continued to increase, many altcoins remain below previous highs, echoing patterns from past bull markets where altcoins surged after Bitcoin hit significant thresholds.
Past Trends Suggest an Altcoin Bull Run May Be Coming
Past cycles indicate that altcoins typically gain value after Bitcoin’s price peaks. During the 2021 bull run, Cardano, Dogecoin, and Algorand grew significantly shortly after Bitcoin’s all-time high.
Additionally, Cardano’s market cap soared from $6 billion to $37 billion in two months, while Dogecoin saw a similar increase. These patterns have analysts speculating whether a similar altcoin rally could occur if Bitcoin’s dominance declines.
According to CryptoBullet, a market analyst, he added to this sentiment, noting that an altcoin season could kick off once Bitcoin breaks its all-time high, entering price discovery and paving the way for altcoins to “catch up” and outperform.
Will Bitcoin’s Dominance Reverse?
Analysts say that Bitcoin’s current dominance level is close to a resistance point around the 60% mark, a historical threshold where Bitcoin’s market share has often stopped.
Sensei, another crypto analyst, explained that Bitcoin’s dominance often declines after reaching this barrier, which may mean a possible reversal toward the 40% level.
Read also: Altcoin Reckoning Nears End as Bitcoin Dominance Rises, Says Analyst
With Bitcoin’s dominance at a critical juncture, Sensei said that a reversal could lead to an altcoin rally, potentially starting in November and lasting through March 2025.
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