Altcoin
Bitcoin: BTC Dominance Drops to 56%: Is It Time for Altcoins to Shine?
- BTC’s dominance has steadily declined over the past few weeks.
- This is due to the fact that its price consolidates within a range.
The resistance faced by Bitcoin [BTC] at the $70,000 price level has led to a steady decline in its market dominance.
BTC dominance refers to the coin’s market capitalization compared to the total market capitalization of all cryptocurrencies. Simply put, it tracks BTC’s share of the entire cryptocurrency market.
At the time of this writing, this was 56.27%. TradingView data.
Source: TradingView
It was altcoins!
Overall, when BTC’s dominance collapses, it opens up opportunities for altcoins to gain traction and potentially outperform the leading crypto asset.
In a send On X (formerly Twitter), pseudonymous crypto analyst Jelle noted that BTC’s consolidation within a price range in recent weeks has led to a decline in its dominance.
However, once the coin successfully breaks through this range, altcoins may see an increase in performance.
Another crypto analyst, Decentricstudio, noticed That,
“BTC dominance has formed a bearish divergence for 8 months.”
Once it starts to decline, it could trigger an altcoin season where altcoin values see significant growth.
Cryptocurrency trader Dami-Defi added,
“The best is yet to come for altcoins.”
However, the expected rally in the altcoin market may not occur in the near term.
According to Dami-Defi, although BTC dominance is unlikely to exceed 58-60%, the current outlook for altcoins suggests a possible short-term decline.
This implies that the altcoin market may experience further declines before a substantial recovery begins.
Will BTC’s dominance decline further?
At the time of writing, BTC was trading at $65,521. For CoinMarketCap According to the data, the value of the king’s coin has decreased by 3% in the last seven days.
With significant resistance faced at the $70,000 price level, accumulation among day traders has subsided. AMBCrypto found key BTC momentum indicators below their respective center lines.
For example, the coin’s Relative Strength Index (RSI) was 41.11, while its Money Flow Index (MFI) was 30.17.
At these values, these indicators showed that demand for the major currency has collapsed, further dragging its price lower.
BTC Parabolic SAR indicator readings confirmed the ongoing price decline. At the time of writing, it was above the price of the coin, and has been positioned that way since June 10th.
Source: BTC/USDT, TradingView
The Parabolic SAR indicator is used to identify potential trend direction and reversals. When its dotted lines are positioned above the price of an asset, the market is said to be down.
Light Bitcoin (BTC) price prediction. 2024-2025
It indicates that the price of the asset is falling and may continue to do so.
Source: BTC/USDT, TradingView
If this happens, the price of the coin could drop to $64,757.
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