Raoul Pal, a well-known trader and founder of Real Vision, thinks Bitcoin’s dominance might be peaking. He’s predicting a shift in the crypto market.
Technical Signals Suggest a Turning Point
Pal’s prediction is based on DeMark Indicators, a technical analysis tool. These indicators, according to Pal, are flashing “top” signals across daily, weekly, and monthly Bitcoin dominance charts. Bitcoin’s dominance is currently near 65%, a significant increase since December 2024, but still below previous highs. He interprets this as a weakening trend.
Altcoins Lagging Behind Bitcoin’s Rise
While Bitcoin’s price has climbed over 6% since the start of 2025, reaching over $103,000, the rest of the crypto market hasn’t kept up. The TOTAL2 index (total crypto market value excluding Bitcoin) is down almost 20% this year, falling from $1.34 trillion to $1.07 trillion. This widening gap between Bitcoin and other cryptocurrencies (altcoins) has fueled Bitcoin’s dominance. Pal believes this gap will soon narrow.
The “Banana Zone” Theory
Pal uses the term “Banana Zone” to describe a period of rapid price acceleration, shaped like a banana curve. He breaks it into three phases. He believes we’re entering phase two, the “Banana Singularity,” where altcoins outperform Bitcoin as investors seek higher returns in riskier assets. This is typically when smaller cryptocurrencies experience significant price increases.
Altcoin Season on the Horizon?
Pal’s analysis suggests Bitcoin’s reign at the top of the crypto market might be ending. If his technical indicators are accurate, altcoins could soon experience a surge in popularity and value. This pattern has been observed in previous bull markets, where capital flowed from Bitcoin to altcoins as Bitcoin’s dominance declined.
