Bitcoin dominance is currently at 60.86%, according to TradingView data. But what does this mean for the crypto market, and why should investors pay close attention?
Bitcoin Dominance and Its Market Impact.
Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that belongs to Bitcoin (BTC). A rising BTC dominance usually indicates that capital is flowing into Bitcoin, making it the primary asset in the market, while a falling dominance suggests that capital is shifting toward altcoins.
Recently, BTC dominance broke a major resistance level of 58%-61% and surged to 64.34%, indicating strong Bitcoin performance. Currently, BTC dominance is testing the 60%-61% support level, and if it holds, we could see a massive expansion toward the 70%-72% range. This movement could trigger a significant sell-off in altcoins as more liquidity stays concentrated in Bitcoin.
What Needs to Happen for an Altcoin Season?
For a true altcoin season to begin, two major conditions must be met:
1. Bitcoin needs to maintain an uptrend rather than being stuck in a trading range.
2. BTC dominance must drop significantly, showing that money is flowing from Bitcoin into altcoins at a large scale.
When this happens, we will witness altcoins outperform Bitcoin, with some meme coins skyrocketing by 3,000%-6,000% in a single candle. During this period, centralized and decentralized exchanges will experience massive surges in altcoin trading, with some coins reaching 4,000x-7,000x gains.
Has the Altcoin Season Started?
No, not yet. Despite several coins pumping between January and March 2024, they did not meet the full characteristics of a real altcoin season. This means the biggest altcoin rally is still pending, and those who position themselves correctly could see life-changing profits.
Timing the End of the Bull Run.
This current bull run is expected to end in 2025, so patience is key. The critical signal to watch for is Bitcoin dominance dropping to around 39%-40%. When this happens, altcoins will be at their peak, and that will be the best time to exit.
Once BTC dominance starts rising again, the altcoin season will come to an end. At that point, a market correction and major sell-offs will begin, leading to:
Over-pumped coins crashing
Massive rug pulls
A liquidity drain from altcoins back into Bitcoin
This cycle will likely repeat after the next Bitcoin halving in 2028, meaning there will be no significant altcoin rally until then.
BTC Price Outlook: Still on Track for $160K-$200K
Despite corrections in altcoins, Bitcoin is still expected to reach at least $160,000-$200,000 before the cycle ends. While altcoins may experience temporary pullbacks, choosing the right projects will ensure long-term gains.
How to Protect Your Investments
Conduct research before investing in any altcoin.
Avoid meme coins with no solid fundamentals, as many are prone to rug pulls and delistings.
Get guidance from experienced crypto investors rather than making impulsive decisions.
Do not gamble your money invest wisely and strategically.
Final Thoughts
The crypto market operates in cycles, and understanding these patterns will help you make informed investment decisions. Stay patient, avoid emotional trading, and most importantly, be ready to act at the right moment. The opportunity for wealth creation is still here but only for those who prepare wisely!
