Bitcoin’s price dipped slightly last week, but its dominance in the crypto market actually increased. This happened because other cryptocurrencies (altcoins) lost even more value.
Bitcoin Dominance: A Bullish Pattern?
Crypto analyst Egrag Crypto sees a bullish chart pattern forming for Bitcoin dominance – an “Adam and Eve” pattern. This pattern suggests a potential price increase. Bitcoin dominance recently broke above a key resistance level (59%). However, Egrag predicts a stronger resistance at 62.30%, potentially causing a pullback to around 61.50%. If it falls below this support, Bitcoin dominance could drop to around 57%.
This drop in Bitcoin dominance would likely mean altcoins gain market share, potentially leading to a short-term altcoin price boost.
Altseason: Still Possible?
While a drop in Bitcoin dominance could signal an altseason (a period where altcoins outperform Bitcoin), it’s not a sure thing. IntoTheBlock, an analytics firm, points out several factors hindering a widespread altseason:
- Low network activity: Not many new users are joining the crypto space.
- Limited real-world use: Many altcoins lack practical applications.
- Tough economic climate: The overall economy isn’t helping.
- Lack of exciting new trends: There’s nothing like NFTs or DeFi to drive altcoin hype right now.
IntoTheBlock suggests we might see some individual altcoins pump (like memecoins), but a full-blown altseason is unlikely until these issues are resolved.
Current Market Snapshot
At the time of writing, the total crypto market cap is around $3.13 trillion, up slightly. Bitcoin’s dominance sits at 61%, followed by Ethereum (10.1%) and other altcoins (28.9%).
