Bitcoin dominance, or the market share $BTC holds relative to all other cryptocurrencies, plays a crucial role in determining the onset of an altcoin season. When Bitcoin dominance rises, it signals that more capital is flowing into $BTC compared to altcoins, often leading to a slowdown or decline in altcoin performance. Conversely, a drop in Bitcoin dominance is seen as a sign of capital shifting into altcoins, signaling the beginning of an altcoin season, where many altcoins experience rapid growth and significant gains. đđ
Bitcoin Dominance: Analyzing the Patterns đđ„
At present, we've been closely watching Bitcoin dominance, and there's been a bearish formation emerging on the daily timeframeâa double top pattern. This signals a potential reversal, meaning that Bitcoinâs dominance could decrease. However, there's always the possibility that the dominance might push up again if a third top forms and we witness an upside breakout. The chances for this, though, seem slim at around 10%. â ïž
Zooming out to the weekly timeframe, we can spot a rising wedge patternâa historically bearish structure. If this breaks to the downside, we can expect $BTC dominance to decline further. A similar pattern occurred in July, leading to Bitcoinâs dramatic $17K crash. If we see a similar breakdown now, it could mark the ideal entry for those looking to capitalize on the altcoin market.
đ Altcoin Season Potential: Whatâs Next?
If Bitcoin dominance does indeed fall, this opens the doors for an altcoin season. With a breakdown in Bitcoin dominance, money that was previously concentrated in Bitcoin begins flowing into altcoins, pushing their prices higher. For those investing in altcoins, this can lead to slow but steady growth, offering the potential for 2x to 10x returns. This doesnât mean that all altcoins will pump overnight, thoughâpatience and holding power are key during this period. đ„
The upcoming weeks will be critical for altcoin holders, and while the exact timing of the altcoin season can be tricky to predict, the technical patterns suggest we may be approaching that moment soon. đŻ
#Bitcoindominance #BTCâ #Altcoinseason2024 #CryptoMarketMoves #AltcoinInvesting
