- An analyst has spotted a crucial pattern in the Bitcoin-Altcoin relationship.
- Bitcoin dominance has surged after bottoming in December 2024.
- The current Bitcoin dominance trend mirrors a pre-2021 altcoin season behavior.
A cryptocurrency market analyst has spotted a crucial development in the relationship between Bitcoin and the rest of the crypto market. In a recent publication, the analyst highlighted the rediscovered momentum of Bitcoin, reflecting the cryptocurrency’s increasing dominance.
The crypto analyst noted a resurgence in Bitcoin’s dominance, after dropping to a 54% low in December 2024. TradingView’s data shows the metric has climbed to 59% this January, following Bitcoin’s recent surge to a new all-time high.
While a rising Bitcoin dominance usually means Bitcoin is gaining popularity compared to other cryptocurrencies, the analyst used the metric as part of a bigger analysis. They compared the current Bitcoin dominance trend to its historical behavior, highlighting how the current pattern looks a lot like the trend during the last bull market.
Related: Bitcoin Dominance at 60% Sparks Altseason Predictions
According to the analyst, Bitcoin’s dominance showed a similar pattern between November 2020 and January 2021. The metric fell to 60% in November 2020, then rallied to 69% in January 2021 before declining. The analyst explained that Bitcoin’s dominance peaked near 72% during the last cycle. Soon after, the price jumped to about $40,000, more than double its previous all-time high. Dominance started falling as BTC’s price soared, signaling a shift in risk appetite toward riskier assets.
Notably, the analyst used the fluctuating dominance of Bitcoin as an indicator to predict the potential evolution of the current bull market. Considering the crypto market’s tendency for pattern repetition, Bitcoin dominance could peak soon, paving the way for investors to shift toward altcoins.
Related: Altcoin Reckoning Nears End as Bitcoin Dominance Rises, Says Analyst
It’s worth noting that many crypto investors expect the altcoin market to surge, given the long accumulation season. Unlike Bitcoin, most altcoins haven’t rallied close to their previous all-time highs, leaving plenty of room for growth. This has many analysts believing an altcoin season, which would lead to a declining Bitcoin dominance, may be just around the corner.
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