A recent evaluation by cryptocurrency expert Dami-Defi reveals a decline in Bitcoin's dominance juxtaposed with a surge in altcoins. This alteration typically suggests a transition of liquidity from Bitcoin to altcoins due to the declining dominance of the former.

Dami-Defi noted a 2% reduction in Bitcoin's dominance within the last 24 hours. Additionally, Total 3, representing the overall market capitalization excluding Bitcoin and Ethereum, is maintaining stability and hints at a probable reversal.

These observations prompt speculations about the potential commencement of an altcoin season. However, conflicting perspectives exist, with some users cautioning against premature predictions and others highlighting advancements in specific alt projects like $AVAX and $LINK post-launch.

An alternative viewpoint speculates that the altcoin season might initiate in October.

Altcoin Buying Signal and Market Overview

A recent report by crypto data platform Dune emphasizes an altcoin dashboard indicating a positive buying signal for altcoins. This dashboard offers a market perspective based on diverse metrics, akin to a TOTAL3/TOTAL oscillator.

TOTAL represents the cumulative market capitalization of all cryptocurrencies, while TOTAL3 denotes the market capitalization excluding BTC and ETH. The oscillator's functionality within the 0 to 1 range resembles traditional indicators such as RSI (Relative Strength Index).

Bitcoin's Technical Performance Analysis

Bitcoin's daily technical chart displays vulnerability by breaching the 50 EMA level. Currently, the BTC price is finding support near the 200 EMA level at approximately $61,644, reflecting buyer presence at lower levels.

The recent drop of around 8.22% in Bitcoin's price signifies a bearish outlook on the daily technical chart. Technical indicators like EMA and RSI also mirror negative trends.

Final Thoughts

The ongoing market trends hint at a critical phase for cryptocurrency investors. As Bitcoin loses dominance and altcoins gain ground, the stage seems set for a potential altcoin season. The decline in BTC dominance by 2% and the support for Total 3 signal a significant shift towards alternative cryptocurrencies.

While Dami-Defi considers this a buying opportunity, conflicting opinions caution against prematurely declaring the commencement of an altcoin season. The decision to invest in altcoins at this juncture should be guided by individual risk profiles and a comprehensive market study.