Recent analyses show a decline in Bitcoin's dominance in the cryptocurrency market and a rising interest in altcoins. This may influence future asset allocations among investors.
Current Situation of Bitcoin Dominance and RSI
Bitcoin's dominance in the cryptocurrency market is showing signs of slowing down, with technical indicators pointing to bearish divergence. Recently, Bitcoin dominance peaked at 54.5% but subsequently fell to 61.2%. An analysis of the Relative Strength Index (RSI) indicates that while dominance reached new highs, the RSI formed lower highs.
Rise of the Altcoin Index
The Altcoin Season Index (ASI) has risen to 39 out of 100, indicating a shift in investor focus toward altcoins. Data shows an increase in ASI from 23 over the past month, even though the market remains within Bitcoin's dominance framework.
Implications of Market Changes
Despite the RSI emerging from oversold territory, Bitcoin's dominance remains below the key 64.31% mark. As long as Bitcoin stays below this level, there is a likelihood that bearish momentum could increase, confirming the shifts and the transition of investors toward altcoins.
The decline in Bitcoin dominance and the rise of the Altcoin Index may indicate new trends in the cryptocurrency market. These changes can significantly affect investor behavior and asset distribution in the future.
