Bitcoin dominates the market – Is the altcoin season still to come?
Bitcoin holds absolute dominance amid the crisis.
Analyst Simeon Koch states that Bitcoin's dominance has risen to 66%, the highest in many years, following recent geopolitical fluctuations.
The US attack on Iran's nuclear facility has escalated Middle Eastern tensions, prompting investors to pull away from risky assets (altcoin) and seek safe assets like Bitcoin.
According to Koch, this is the biggest barrier preventing the altcoin season from starting. However, Iran's controlled counter-response and easing tensions have helped stabilize the market.
Only when BTC's dominance decreases can altcoins have a chance to shine.
According to previous market cycles, the altcoin season only begins when Bitcoin's dominance peaks and then gradually declines, indicating that capital is starting to flow into other coins.
Currently, technical indicators such as RSI have entered the overbought zone, and some global liquidity indicators are reflecting the possibility that BTC is about to reverse its dominance.
If Bitcoin's dominance decreases in the coming weeks, this could be a signal for the start of a new altcoin season.
Altcoin season: High profits come with significant risks.
Expert Koch warns: Altcoin season is the most profitable period but also the easiest to lose.
Based on the Altcoin Season Index, currently only 16% of altcoins have outperformed Bitcoin in the past 90 days, indicating that BTC still holds the upper hand.
When this index surpasses 75%, the altcoin season truly begins. Investors are advised to be cautious and not chase FOMO, as the altcoin market often ends with a sharp plunge.