Many crypto investors are predicts a full-blown altcoin season Where many altcoins completely surpass Bitcoin. This feeling is revealed by different views, especially now that the Bitcoin dominance has The rice to a larger rejection zone. However, Bitcoin -dominance tells another story.
Noteworthy, the Bitcoin dominance has broken back over 63.96% region and is approaching a critical zone around 64.45%. According to crypto analysts Rect Capital, a closure above this level can suppress all hopes for an Altcoin season.
Bitcoin -dominance shoots toward key historical threshold
Bitcoin’s dominance over the crypto market has continued to collapse, even during its price correction, which has been highlighted most of April’s price measure. As it says, the Bitcoin dominance is now at levels that have been seen by 2021, under the height of Bull Rally. How it plays here can determine the fate for an Altcoin season.
What is doing Current Bitcoin -dominance interesting is the texture and duration of the trend. After erupting from a perennial downward channel in 2023, Bitcoin Dominance has run a pure trend, supported by a strong rising trend line. The latest reproduction of the area 57.68% to 59%, characterized by a black circle in the monthly BTC dominance diagram below, has caused a new force that now threatens to convert the 64% region from resistance to support.
This was marked in a post on xWhere Rect Capital noted that the dominance is now at its highest level that has not seen since the beginning of 2021. Now Onus is on if bitcoin dominance manages to close April over 64% level, and especially if it turns the level to support a retest, as it can delay or even submit the strength of an altcoin.
He explained that in such a scenario, Bitcoin’s dominance recording would be strengthened and would probably target the next historical resistance zone close to 71%, a level that was last reached in 2019. Such an extension in Bitcoin dominance would of course come at the expense of Altcoin market share. In short, the longer Bitcoin is dominant, the smaller the window for an altcoin season.
Short-term altcoin windows still possible
Rect Capital acknowledged that one Short Altcoin windows Can still come up if Bitcoin dominance begins to vary close to the 64% region. However, he warned that such a period would be characterized by high volatility and probably be short -lived. At the time of writing, Bitcoin dominance is 63.2%, having recently reached a year of 63.6% over the past 24 hours.
A crucial monthly closure in the next few days can determine the broader market structure entering May. Altcoin -holder who hopes for a big rally may want to look at this chart more than Each individual crypto settingfor if bitcoin continues to dominate, the window of Altcoins can decrease rapidly.
Trained Image from Adobe Stock, charts from tradingview.com
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