- Bitcoin dominance is approaching a key multi-year resistance level around 56.85%.
- Historical patterns suggest a potential “Alt-Season” if Bitcoin dominance faces rejection.
- Altcoins could see significant gains as Bitcoin dominance trends downward.
Bitcoin’s market share has steadily shrunk over the past few months, a trend that could signal a surge for altcoins. In line with this shift, the altcoin market cap has gradually increased to $824 billion.
Bitcoin and Ethereum Dominance Decline
Market data from TradingView shows Bitcoin’s dominance (BTC.D) has decreased by 1% over the past week and 1.36% over the past month. At press time, BTC.D hovers around 56.93%.
Similarly, Ethereum’s market dominance has dropped by 2.11% over the past week and 3.44% over the past month. Looking at it from a six-month timeframe, Ethereum’s market dominance has dropped by 20.1%.
Observing this data, crypto commentator Sheldon Sniper, a host at Crypto Banter, expressed that altcoins could be setting out for massive gains.
Altcoin Market Cap Grows
According to market data, the altcoin market is currently valued at $824 billion, a significant increase from the $780 billion recorded just a week ago. Although the overall trend remains negative, the altcoin market saw over $44 billion influx in the past seven days.
This divergence between the altcoin market cap and Bitcoin further hints at a change in investor behavior.
Altcoins Outpace Bitcoin in Recent Recovery
This shift is especially noticeable in the ongoing market recovery. While Bitcoin leads the recovery, some altcoins are posting significantly better gains. For instance, Toncoin (TON) is up by 8.72% today, trading at $5.11, reducing its weekly price decline to just 1.7%.
On the other hand, Bitcoin is up by 2.14%, trading at $55,310 at press time, while nursing a loss of 5.32% in its weekly performance. A similar trend is seen with Ethereum, which is experiencing an 8.33% loss over the past seven days, despite a 1.45% gain today.
Other altcoins leading the market comeback include Solana’s meme coin Popcat, which saw a 13% gain today, as well as Fantom (FTM) and Bittensor (TAO), both of which have grown by over 10% in the past 24 hours.
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