Bitcoin's market share falls below 60%, is the altcoin season signal already emerging?
According to the latest data from TradingView, Bitcoin's market share (BTC.D) has fallen below the key psychological level of 60%, the lowest level since January this year, reflecting that funds are accelerating towards Ethereum and other altcoins.
This trend began to emerge since the end of June, with Bitcoin's market share dropping by 10% in just over a month to the current 59.14%, sparking widespread discussion in the market about the impending "altcoin season."
Observing historical patterns, it can be found that during previous bull markets, when Bitcoin's market share consistently fell below key support levels, it often marked the official start of the altcoin season. Currently, Bitcoin's market share has fallen below the key support level of 60%, also showing early signs of funds rotating into altcoins.
This change in fund flow is confirmed by technical indicators. Currently, according to BlockchainCenter's altcoin index, it has risen to 51, while CoinMarketCap's altcoin season index, although still at a moderate level of 41 (out of a maximum of 100), still has room to rise to reach the index value that indicates the start of the altcoin season.
It is worth noting that this round of market activity highly aligns with historical patterns. In the bull market cycles of 2017 and 2021, significant altcoin rallies occurred after Bitcoin's market share fell below the 50% threshold.
Crypto research firm Bull Theory points out that Bitcoin's dominance weekly chart has shown signs of fatigue, and once it falls below key support, it will trigger an altcoin rally. The firm predicts that in the next six months, Bitcoin's market share may drop to 45%, while quality altcoins could rise 10 to 50 times.
However, market analysts also remind investors that Bitcoin's price remains relatively stable within a range, indicating that the current rotation of funds is still within a healthy range and may not yet have officially started the altcoin frenzy season.
In summary, with the dust settling from the U.S. midterm elections (expected in November this year), the cryptocurrency market is expected to welcome a sustained rebound and drive the diversification trend of the digital asset market into a new phase.