Bitcoin Dominance (BTC.D) is once again flashing a major shift in sentiment within the cryptocurrency space. Perhaps the most exciting implication of Bitcoin’s dominance decline is that the market could be bracing for a big altcoin rotation. This comes after Bitcoin Dominance faced resistance.
Bitcoin Dominance, an indicator reflecting Bitcoin’s percentage of the entire cryptocurrency market cap, is a favorite among traders. They are just attempting to predict the next big wave in the market. Based on the technical analysis at this time, altcoins seem poised to retake the spotlight.
Resistance and Reversal
BTC Dominance is currently testing a key resistance area around 67% to 70%. It turned around in a dramatic fashion after only a few weeks in this zone. It is now sitting around 64.62%.
This pullback from the resistance zone indicates that the recent Bitcoin-led breakout rally was a “fake breakout.” A continuous dip in Bitcoin Dominance should be the final signal to kick off an altcoin season explosion.
The white resistance zone, known as a Quarterly Breaker Open, has previously defined the top for Bitcoin Dominance. Once it peaks, altcoins come in to lead the way.
Key Levels to Watch
Bitcoin Dominance (BTC.D) likely to continue falling through several significant levels. The gentle decline is set to begin with a 50% psychological marker.
Bitcoin Dominance set to fall below trendlines beginning at 48%. If it goes down further, we might start to see it crash into the pivot zone at 40.68%. The last crucial level for Bitcoin Dominance to fall below is the low established at 36.03%.
Analyst's Perspective
BTC Dominance looks great from an exciting point of view. Bitcoin Dominance could potentially finish a three-drive formation in technical projections, before diving down towards important Fibonacci retracement levels. This prediction is in line with the price movement observed during October-November 2023.
Traders were skeptical of that first rally back in 2020, only to see one of the largest uptrends explode within days thereafter. Our analyst has the firm conviction that the market is still primed for a major Bitcoin price surge to the upside. Their breakout could well come late this spring or early summer.
It doesn’t make sense for Bitcoin Dominance hitting a bottom to be bullish for crypto. As far as seeing delays to the start of the altcoin season, the delays are more time-related than price-related. On-chain analyst Willy Woo believes bitcoin price has already found a bottom.
