BTC Dominance to Shrink More, Era of the Altcoins Begins

The resistance faced by Bitcoin [BTC] at the $70,000 price level has led to a steady decline in its market dominance.

output: As Bitcoin (BTC) continues to trade below the crucial $70,000 price level, its market dominance has been on a steady decline. At the time of writing, BTC’s dominance stood at 56.27%, according to TradingView’s data.

Usually, a decline in BTC’s market dominance presents an opportune time for altcoins to gain momentum and potentially outpace the leading crypto asset.

Pseudonymous crypto analyst Jelle highlighted this point in a recent post on X (formerly Twitter). According to Jelle, BTC’s consolidation within a price range over the last few weeks led to a decline in its dominance. However, once the coin breaks out of this range successfully, altcoins might see a surge in performance.

Another crypto analyst, Decentricstudio, also noted that BTC’s dominance has been forming a bearish divergence for eight months now. Once BTC’s dominance begins to decline, it might open up an altcoin season where the values of altcoins see significant growth.

Crypto trader Dami-Defi also chimed in, adding that the best is yet to come for altcoins. However, the projected altcoin market rally might not be in the short term.

According to Dami-Defi, while BTC’s dominance is unlikely to cross 58-60%, the present outlook for altcoins suggested a possible short-term decline. This implied that the altcoin market might see further dips before a substantial recovery begins.

At press time, BTC was trading at $65,521. According to CoinMarketCap’s data, the king coin’s value has depreciated by 3% over the last seven days. With significant resistance at the $70,000 price level, accumulation among daily traders has reduced.

AMBCrypto found BTC’s key momentum indicators below their respective center lines. For instance, the coin’s Relative Strength Index (RSI) was at 41.11, and its Money Flow Index (MFI) was at 30.17. At these values, both indicators highlighted a decreasing demand for the leading coin, which could further drag its price down.

Indicating the ongoing price decline, BTC’s Parabolic SAR indicator was also spotted above the coin’s price at press time. The last time they were seen in this position was on 10 June.

The Parabolic SAR indicator is used to identify potential trend direction and reversals. When its dotted lines are placed above an asset’s price, the market is said to be in a decline. It indicates that the asset’s price has been falling and may continue to do so.

If this happens, the coin’s price could drop to $64,757.

News source：https://www.kdj.com/cryptocurrencies-news/articles/btc-dominance-shrink-era-altcoins.html

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