Analyzing the BTC dominance structure in the cryptocurrency market reveals it mirrors trends seen in 2021, raising interest in a potential rise of altcoins.
BTC Dominance Structure Resembles 2021
BTC dominance is forming a structure similar to its movement in early 2021, as noted by market observers. Reports indicate that the dominance chart peaked, followed by a sharp drop and an eight-week consolidation period before altcoins surged. The current situation also demonstrates sideways movement near the 61.6% level.
Critical Support Zone for BTC Dominance
The support range between 60% and 62% has become a decisive level for BTC dominance. If this level is broken, there is a possibility that dominance could drop to 50% or even 45%. Such a shift suggests an increasing interest in altcoins as capital moves away from Bitcoin.
Bitcoin Price Decline and its Impact on Altcoins
As of the time of publication, Bitcoin's price sits at $115,596, reflecting a 2.66% drop over the last 24 hours and a 3.36% weekly decline. The decline in BTC price, combined with the dominance shift, strengthens the theory of an impending altcoin rally, as traders may seek more volatile assets for higher returns.
Current trends in BTC dominance and declines in Bitcoin prices create favorable conditions for potential altcoin activations. Monitoring investor sentiment and market dynamics could aid in forecasting further changes.
