In every crypto cycle, there comes a moment when attention shifts from Bitcoin to the wider market — this is the much-anticipated altcoin season, when altcoins consistently outperform the king of crypto. During this period, altcoins outshine Bitcoin, delivering explosive gains and capturing the spotlight. Although there is no set timeframe for the arrival of the altseason, signs will be available that indicate the start of altcoin season.
One of the major signs is the fall in Bitcoin dominance, a parameter that shows Bitcoin’s share of the total cryptocurrency market capitalization. When it’s altcoin season, the Bitcoin dominance falls and the altcoins take over the market. However, the Bitcoin dominance keeps falling and rising often, but the recent fall is beyond recovery, according to a trader.
Crypto trader, who goes by the pseudonym Merlijn The Trader, stated that the Bitcoin dominance has fallen below a major trendline or support level. With this outlook, rotation of funds from Bitcoin to altcoins is not coming. “It’s here.”
Bitcoin dominance falls beyond recovery
On the weekly chart, the Bitcoin dominance has fallen below 60% and is at 58%. With this fall the Bitcoin dominance has broken below the bullish trendline. However, this crash below the trendline took place just a few weeks back as well, and following this fall BTC dominance was back on track above the trendline. So now the question is, will the BTC dominance get back on track and keep moving higher?
No. Here’s why it wont recover. If you closely look at the chart, you would see that the last time Bitcoin Dominance crashed, it was supported by the 50-day moving average (yellow line). This line gives an overall view about the Bitcoin dominance for the past 50 days. Breaking below this line is hard and if it does break, recovering above that is harder.
However, the fall this time around is below the 50-day moving average, hence, a recovering from here would take a lot of effort, as Bitcoin still struggles to find a support level close to $110K. Hence, the altcoin season has already started.
