Bitcoin's dominance declined in the first half of May, opening the door for alternative currencies to register new upward momentum, supported by the formation of a 'golden cross' on technical analysis indicators.
According to data, Bitcoin's market share fell from 65% to 61% between May 7 and 13, the lowest level of its dominance since 2021, which witnessed one of the strongest alternative currency seasons ever.
Despite Bitcoin's price rising by 7% during the same period, the contraction of its market share effectively translates to a decline of about $80 billion in market capitalization in favor of other currencies.
This dynamic indicates a relative shift in investor interest from Bitcoin to alternative digital currencies, especially with the improvement of technical momentum indicators.
Analysts on YouTube confirmed on May 13 that the major alternative currency price index formed a golden cross as the short-term moving average crossed above the long-term one, indicating the possibility of continued upward momentum.
Historically, this pattern is considered one of the most prominent indicators of entering a long-term growth cycle.
The return of the golden cross, coinciding with the decline of Bitcoin's dominance, brings to mind the 2021 cycle that witnessed exceptional returns for some alternative currencies, such as 'Shiba Inu' and 'Dogecoin'.
If similar conditions repeat, the market capitalization of alternative currencies could exceed $5 trillion by 2026, according to current estimates.
