Recent analysis points to a correction in Bitcoin's dominance, potentially opening opportunities for altcoins to rise.
Bitcoin Dominance Correction
Bitcoin dominance (BTC.D) is entering a corrective cycle after months of supremacy. This could be a sign of altcoins gaining strength. Observations show that Bitcoin dominance recently peaked around 65.5% before sharply declining to the 63.8% zone. Technically, there is a possibility that dominance may fall below 60%, which historically has indicated the beginning of strong altcoin rallies.
Confirmation Below 50-Day Moving Average
Analysts note that in early April, Bitcoin dominance broke below the 50-day moving average (MA), marking a key structural shift. Attempts to reclaim this average have failed in May, leaving current readings around 63.8%, which exposes downside risks. Technical studies suggest a projected decline toward the 59% level.
Approaching Altcoin Season
A decline in Bitcoin dominance may set the stage for altcoin growth. Traders are now watching for a decisive breakdown below key support. Should Bitcoin's dominance dip below 60%, it could unleash an altcoin rally, aligning with historical patterns that show a decreasing BTC.D boosts altcoin gains.
Current signals in the cryptocurrency market indicate a potential beginning of the altcoin season as Bitcoin's dominance decreases. Investors will closely monitor further market dynamics.
