$BTC Bitcoin dominance will decline and an altseason could begin under the following conditions:
1. Investor Risk-Off
As investors move their funds from Bitcoin to altcoins, BTC dominance tends to decline. This usually occurs when the market is bullish, i.e. in a bull market.
2. Growth in Altcoin Narratives
Launch of new technologies, blockchains, or narratives that drive specific altcoins, such as new DeFi protocols, NFTs, or improvements in smart contracts.
3. Bitcoin Price Stagnation or Decline
If the price of Bitcoin stabilizes or begins to correct after a significant rally, investors usually start looking for larger gains in altcoins.
4. Decline in BTC Volume
In the attached chart, trading volume is a leading indicator. If BTC volume decreases while altcoin volume increases, it could be a sign of a transition into altseason.
5. Technical Indicators
A drop in Bitcoin dominance (BTC Dominance) on the global chart.
RSI (Relative Strength Index): If Bitcoin’s RSI is overbought while altcoin RSIs are at low levels, it is an indication that investors may change direction.
Classic Signs of an Altseason Start:
Ethereum (ETH) often leads the altcoin rally.
Small altcoins start to surge with large daily gains.
Bitcoin dominance in the global crypto market starts to drop below 40-45%.
If you need more detailed analysis or how to look at these metrics on specific charts, I can help!
