Bitcoin’s price is hanging around $105,500, after a brief peak at $106,807. Its dominance – the percentage of the total crypto market it controls – is also slipping, hovering near 64%. This has a market analyst, Tony “The Bull” Severino, thinking a shift might be coming.
Technical Signals Suggest a Turn
Severino, a Level III CMT analyst, sees the 64% level as a crucial point. He points to a recent “Doji” candlestick on the monthly Bitcoin dominance chart. In candlestick charting, a Doji is an indecisive candle, and this one formed right at the bottom of a previous “Falling Window” – a significant gap in price. This combination suggests Bitcoin’s dominance rally might be weakening.
If this month’s candle closes as an “Evening Star” pattern (a bearish reversal pattern) and falls below 62%, Severino believes the chances of Bitcoin’s dominance reversing significantly increase.
Altcoin Season? Maybe, But Not Yet
While the technicals hint at a potential short-term reversal in Bitcoin’s dominance, Severino isn’t predicting a full-blown altcoin season just yet. He notes that the Relative Strength Index (RSI) for Bitcoin dominance was above 70 last month, indicating strong momentum. So, while the signs are there, it’s not a guaranteed win for altcoins. He’s cautiously optimistic, seeing early signs of a potential reversal but not a sure thing.
The Current Situation
For now, Bitcoin is holding steady above $105,000, and its dominance remains above 62%. However, altcoins could soon have their first real chance to gain ground in months. At the time of writing, Bitcoin is down slightly, while Ethereum’s market share is up, suggesting a possible shift in the market balance.
