Bitcoin's market dominance is nearing a critical point, often a signal for the next altcoin season. Historically, altcoin seasons start when Bitcoin's dominance drops below key levels.
Current Market Situation
Currently, Bitcoin's dominance stands at 56.90%. Once it hits 60%, a significant altcoin rally could be triggered. The Relative Strength Index (RSI) also suggests a potential altcoin season due to its current divergence. If the pattern holds, we could see major gains in altcoins similar to previous seasons in 2017 and 2021.
Bitcoin Price Dynamics
Charts suggest Bitcoin might start rising soon, possibly reaching $100K. Bitcoin dominance could drop, leading to a big altcoin season. Altcoins have been gaining traction, and the total market (excluding Bitcoin and Ethereum) shows a bullish pattern with a cup and handle formation, which could lead to gains in altcoins.
Forecasts and Expectations
On the 4-day chart, the Super Trend indicator is showing a bearish red signal, and the 2-day chart reflects a downward trend with lower highs and lows, forming a descending broadening wedge pattern. On the daily chart, Bitcoin is trading between support at $56,000–$57,000 and resistance at $60,000–$61,000. If Bitcoin breaks above $61,000, resistance levels to watch are around $63,000 and $64,500, with major resistance between $67,000 and $68,300. If the price falls below $56,000, key support levels are around $51,000–$53,000.
In the short term, the 2-hour chart shows a bullish divergence that may continue for a day or two, especially if the RSI bounces from its support line. However, this bullish relief is occurring within a larger bearish trend.
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