Bitcoin Dominance (BTC.D) is currently signaling a potential shift of funds into altcoins. This article examines key aspects of the situation and historical examples.
Current State of Bitcoin Dominance
Currently, BTC.D has entered overbought territory (above 64-65%) with RSI readings nearing 80, which historically have preceded significant declines.
Historical Patterns and Altseasons
In previous cycles, when BTC.D exceeded 64-65%, it often marked the peak of Bitcoin’s market dominance. For example, powerful altcoin rallies followed these levels in early 2021 and mid-2017.
Strategy for Preparing for Altseason
Investors are advised to closely monitor BTC.D and technical indicators such as RSI. Identify reliable projects and set exit targets in anticipation of a potential altseason.
The current situation with Bitcoin Dominance indicates a likely transition of funds into altcoins. Investors should watch for signals that may suggest the start of a new altseason.
