Bitcoin Dominance Is Back on Top, Could This Be the Calm Before an Altcoin Season Storm?

Bitcoin is once again dominating the crypto conversation, not just in price, but in overall market presence. According to trader Rekt Capital, BTC's dominance has now climbed past 65%, marking a key milestone that could trigger major changes in the market.

Bitcoin's dominance in the crypto sphere is reaching a crucial milestone, with its share of the total market presence now surpassing 65%, indicating a potential shift in the balance of power.

This development is sparking interest in whether it could be a warning sign for altcoins, or if it's setting the stage for a full-blown altcoin season to commence.

After a period of ranging, Bitcoin dominance is showing signs of a breakout, with the next key resistance level at 71%. A breach of this level could have significant implications for the market.

Currently, Bitcoin's dominance stands at 65.38%, and if this trend persists, it could herald a turning point for the crypto landscape.

Bitcoin's price has soared to $97,000, marking a 30% rise from its 2023 low and positioning it at the cusp of the $100,000 price point.

This strong performance is partly attributed to the increasing demand for Bitcoin over other cryptocurrencies, which is also evident in the declining market share of altcoins.

Among altcoins, Ethereum has seen its share shrink to 7.5%, a substantial decrease from its peak of over 22% in 2022.

Although Bitcoin has been rallying, Ethereum isn't displaying the same strength, with the ratio of Ethereum to Bitcoin approaching record lows.

A sustained rise in Bitcoin dominance could hamper the recovery of altcoins, but if the 71% level holds and triggers another reversal, it could pave the way for an altcoin season.

During an altcoin season, smaller coins tend to outperform Bitcoin as investors rotate out of the leading cryptocurrency and seek higher returns in the altcoin market.

The Altcoin Season Index currently stands at 29, indicating that there is still some time for a full-fledged altcoin season to kick in.

For a complete altcoin season to commence, at least 50 out of 75 altcoins will need to outperform Bitcoin over a period of two weeks.

If Bitcoin dominance continues its ascent and breaks through the 71% level, it could set the stage for an "exhausting move" in altcoins, as smaller coins are likely to pour into the market in an attempt to keep up with the rapid price gains in BTC.

This scenario could lead to a brief period of "quiet" before a full-blown altcoin season kicks off.

However, if the 71% level holds and triggers another reversal, it could be the start of an "altcoin season," a period when smaller coins gain strength while Bitcoin cools off.

This shift in momentum could be significant for the cryptocurrency market, as it could herald a change in investor sentiment and trading activity.

At the moment, Bitcoin is juggling the critical $90,000 support and the $100,000 resistance levels, both of which could have major technical implications for BTC's short-term price trends.

As Bitcoin's price hovers around $97,000, traders are closely watching to see whether it will break through the $100,000 barrier or slip back down to retest the $90,000 support.

A breakdown below $90,000 could open the door for a deeper correction, potentially setting the stage for a retest of the $76,000 support level, which was pivotal in Bitcoin's 2023 bull run.

On the other hand, a break above $100,000 could clear the path for a continuation of the recent rally, setting the stage for a move towards the next key resistance level at $120,000.

This technical analysis provides valuable insights into the potential price movements of Bitcoin in the coming weeks, and traders are keenly focused on these levels as they make their trading decisions in the volatile cryptocurrency market.

The coming weeks will be crucial in determining the direction of Bitcoin's price trends and setting the stage for the next chapter in the cryptocurrency saga.

output: Bitcoin is once again dominating the crypto conversation, not just in price but also in overall market presence. As reported by trader Rekt Capital, BTC’s dominance has now climbed past 65%, hitting a key milestone that could have major implications for the market.

So, the big question is—are we looking at a warning sign for altcoins, or is this just the quiet calm before a full-blown altcoin season kicks off?

Bitcoin Dominance On Its Way To Hit 71%

Over the past several months, Bitcoin dominance has been steadily increasing, meaning Bitcoin is taking up a larger share of the total crypto market. This usually happens when investors are more interested in Bitcoin than other cryptocurrencies.

A recent chart shared by crypto analyst Rekt Capital showcases how Bitcoin’s dominance is approaching a