Bitcoin Dominance and Altcoin Season
With Bitcoin (BTC) unable to escape its uptrend, speculation is growing as to whether altcoin season has begun. As Bitcoin faces ongoing resistance near $60,000, analysts say this could signal the start of altcoin season.
Is Bitcoin’s Dominance Shaking?
As of this writing, Bitcoin dominance (BTC.D) is 56.91%. It failed to break above the rising trend line on August 5 and has been trending downward since then. Failure to break out of the rising wedge is generally seen as a bearish sign, meaning Bitcoin’s dominance may have peaked or may be declining. As Bitcoin’s dominance wanes, altcoins have an opportunity to gain market share.
Chris AI pointed out that Bitcoin’s dominance failed to break out of the wedge in the face of strong resistance on the downtrend, which encouraged further speculation. Another analyst, SenseiBR, noted that BTC.D is “ending diagonally.” If BTC.D forms an ending diagonal pattern, it would signal a significant change in market sentiment, potentially leading to a surge in altcoin activity and higher prices.
The Rise of Altcoins
Altcoin season started when more than 75% of the top 50 altcoins outperformed Bitcoin over the past 90 days. Currently, only 14 altcoins, or 28%, have achieved this goal. This indicates that while Bitcoin’s dominance may be declining, altcoins are still in the process of surpassing leading coins in the market.
Furthermore, the TOTAL2 trend evaluated on the daily chart is within a horizontal channel. This suggests that buying and selling pressure is relatively balanced, preventing prices from moving strongly in one direction. The altcoin season will officially begin once TOTAL2 successfully breaks out of the channel cap forming resistance, confirming stronger momentum and opening up space for other cryptocurrencies to grow.
