Bitcoin’s advantage is 60% below 60% for the first time in six months. However, despite Altcoins moving to gain more market share, this high dominance remains a barrier to the Altcoin market. Given this, Bitcoin’s advantage is expected to continue to determine where the crypto market is heading from here, and even when the Altcoin season will begin.
How Bitcoin domination drives the market
As the crypto market struggles to find its foothold in a ever-changing macro landscape, Bitcoin domination continues to put pressure on In the wider Altcoin market. Crypto analyst Luca points out this in an analysis that focuses on Bitcoin domination and how it drives recent markets.
Luke points out that Bitcoin’s domination actually fell below this cycle for the first time. This was a weekly Bull Market Support Band, and it was below this level in the last cycle that was below the last level. In addition to breaking under this support band, Bitcoin’s domination was also retesting the same level as resistance.
Historically, such moves are not bullish due to prices, but bearishness tends to revive over the long term than in the short term. As Luca explains, this indicates a higher risk appetite again, so market makers tend to use it as a distribution tool.
Among this, Crypto analysts hope that their attention will change as investors spin out of Bitcoin. Naturally, this spinning leads to altcoins transfer. This means a higher margin of profit compared to Bitcoin, which is currently the highest trading ever.
Altcoin season and the bottom of domination
When Bitcoin to Altcoin spin begins, you may notify you of the start of the altcoin season. This is characterized by a massive decline in Bitcoin dominance as large cap altcoins gather and begin stealing market share. Next, it begins to wait for the bottom of Bitcoin control.
Luka points out that once Bitcoin’s advantages find a bottom, this phase ends. As for where the bottom is, Crypto analyst refers to a level of 47%-48% as possible bottom. When this happens, it will mark the end of the altcoin season when Bitcoin begins to take control again.
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