Altcoin Season Incoming? Bitcoin Dominance Drops Below Key Support
The post Altcoin Season Incoming? Bitcoin Dominance Drops Below Key Support appeared first on Coinpedia Fintech News
Bitcoin dominance is weakening, and traders are watching closely. This shift has sparked talk of a new altcoin season, with analysts expecting capital to rotate from Bitcoin into major altcoins. As BTC.D falls below a key support level, many believe the market is entering a new phase.
Altcoin Season Signals? Bitcoin Dominance Slips Below 63.98%
At the beginning of this month, the total market cap of the cryptocurrency market was $2.63 trillion. In the initial days of the month, the market experienced extreme volatility. Between April 5 and 7, the market plummeted by 9.8%, dropping to a monthly low of $2.31 trillion. From April 9 to 12, the market climbed by over 11.71%. As of now, the total market cap is at $2.65 trillion, down 5.2% from the monthly peak.
The altcoin market has followed a similar pattern. Starting the month at $991.26 billion, it dipped to $831.83 billion by April 7. Between April 9 and 12, the market rebounded by 11.6%. Currently, the altcoin market cap sits at $958.43 billion—around 7.8% below its April peak.
The four-hour BTC.D chart shows that April 7’s peak of 63.98% acted as strong resistance. On April 16, Bitcoin dominance broke above it, only to fall back below it today. Now, it sits at 63.83%. If the trend continues, dominance could test the monthly low of 63.16%, further fueling altcoin optimism.
Top Altcoins Surge
Crypto analyst Crypto Rover shared on X that we may see sharp capital inflows into altcoins soon. Since April 16, the altcoin market has grown by 1.99%. Interestingly, when Bitcoin dropped from $84,936.62 to $84,479.38, the alt market climbed from $947.58 billion to $948.94 billion.
Top altcoins are already showing strength:
- Ethereum (ETH) up 0.85%
- XRP up 0.6%
- BNB up 0.7%
- Solana (SOL) up 2.7%
- Dogecoin (DOGE) up 2.1%
- Cardano (ADA) up 2.1%
As Bitcoin dominance continues to decline, market analysts anticipate a rotation of capital into altcoins. If momentum holds, this could mark the beginning of a strong altcoin season. With top altcoins already gaining, the market is now watching to see if this breakout will sustain.
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FAQs
The Altcoin Season Index measures the performance of altcoins relative to Bitcoin. A low index value, such as 15, can indicate potential for an altcoin rally.
Lower Bitcoin dominance often leads to capital flowing into altcoins, boosting their prices as investors diversify from BTC to major altcoins.
