The dominance of Bitcoin, or its market share in relation to the cryptocurrency market as a whole, is one of the indicators commonly used to signal whether the altcoin season has begun. It reflects the overall sentiment of investors and the market's risk tolerance.
This indicator had been on a downward trend since June 27, reaching an eight-week low of 62.61% on Thursday.
Several analysts said that Bitcoin's market dominance had peaked as altcoins continued to rise. The popular cryptocurrency analyst Mikybull Crypto said: "Bitcoin's dominance is collapsing" as it breaks below the critical support provided by the 50-day simple moving average (SMA) at 64.78% and the 100-day SMA at 64.38%.
"Great value for altcoins."
Bitcoin's dominance is "breaking slightly, but it has a long way to go to confirm that a major change is expected," said Daan Crypto Trades, suggesting that it might be too early to say that an altseason is starting. For example, the Blockchain Center altcoin index has more than tripled since June 22. But still, only 39% of the top 50 altcoins have outperformed BTC over the last three-month period, far from the 75% needed for an official altcoin season.
