Bitcoin Dominance Aims At Historic Lows, Unprecedented Altcoin Season Potentially Ahead

Share This Post

While Bitcoin continues to take a beating in terms of dollars, the top cryptocurrency also continues to lose its share over the market cap. In fact, with the most recent support level breached, BTC dominance could be targeting historic lows.

Historic lows in BTC dominance could mean that an altcoin season unlike ever before is potentially ahead. Here’s a closer look at the metric that weighs Bitcoin against the rest of the crypto space and how it could impact altcoin performance.

Bitcoin Continues To Lose Cryptocurrency Market Dominance

At one point, there was only Bitcoin. As the industry grew, a metric was born called BTC dominance that made it more clear how much weight the top coin had compared to the rest of the market.

Prior to 2017, Bitcoin accounted for as much as 95% of the entire cryptocurrency market, but fell to a low of 35% less than a year later during what is considered to be the greatest altcoin season on record.

Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End

After reaching such extremes in 2018, by 2020, Bitcoin had recovered more than two-thirds of the market cap. Dominance topped out near 70% where it sharply reversed all throughout 2021.

At the close of the 2021 yearly candle, a several year trading range was officially breached. The well defined range is even more visible in the six-month BTC.D chart. And it could create the conditions necessary for an unprecedented altcoin season.

The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on
Unprecedented Altcoin Season Could End At 32% Dominance

With a decisive close on high timeframes, lower timeframe patterns could provide clues as to where dominance might bottom out once again.

Related Reading | Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern

The target of a head and shoulders top sent BTC.D to the dashed line, reinvigorating altcoins but still falling short of the mania seen during the 2017/2018 peak.

A descending triangle could target 32% dominance | Source: CRYPTOCAP-BTC.D on

With a potential descending triangle breaking down, the measure rule would make the target of the structure around 32% dominance. The target would suggest a move beyond the former historic low set years ago – and create the atmosphere needed for the aforementioned altcoin season mania.

But it all could come at the expense of Bitcoin and its undisputed reign as the number one cryptocurrency by market cap.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from

Read Entire Article

Related Posts

Dogecoin Plunges 11%, But This On-Chain Cushion Could End Decline

Dogecoin has observed a plummet of 11% over the past week, but this decline may not continue further, as DOGE is now just above a major on-chain support block Dogecoin Is Now Just Above A Major

Ryze Labs Weighs In: Fed’s Stance on Interest Rates and Its Impact on Market Dynamics

Following the release of lower-than-anticipated CPI data on June 12, US equities climbed to record highs, with bitcoin exceeding $70,000 However, Ryze Labs, a venture capital firm investing in

Bernstein raises long-term Bitcoin price projection to $1 million by 2033, initiates MicroStrategy coverage

Bernstein has doubled down on its optimistic Bitcoin price projections, raising its long-term forecast to $1 million by 2033, driven by unprecedented demand and constrained supply Bernstein analysts

Is This Bitcoin Cycle Going To Be Shorter Than Usual? Analyst Shares Insights

As the cryptocurrency community braces for the much-anticipated Bitcoin explosive rally following the Halving event, popular market analyst and trader Rekt Capital, with an insightful prognosis has

Holograph Compromised: HLG Value Plummets as Hacker Illegally Mints 1 Billion Tokens

On June 13, an unidentified hacker minted one billion HLG tokens by exploiting vulnerabilities in the Holograph operator smart contract The Holograph team has patched the initial exploit and is

NEAR Protocol: From Recent Dip To Google Search Darling – Is $16 Next?

NEAR Protocol (NEAR) is making waves in the cryptosphere, surging to the top of Google searches and capturing investor attention This newfound interest, coupled with strong activity data from
- Advertisement -spot_img