Bitcoin’s dominance over the crypto market has been on a steady climb lately, recently surpassing 64%. This has put pressure on other cryptocurrencies (altcoins). While Bitcoin dipped below $105,000 recently, altcoins saw drops throughout the previous week. But this Bitcoin-dominated period might be short-lived.
Bitcoin Dominance Hits a Wall
A crypto analyst, Astronomer, pointed out that the 64% dominance level is a major hurdle for Bitcoin. Charts show this level has repeatedly stopped Bitcoin’s dominance from rising further over the past month. Even though Bitcoin hit a new all-time high recently, its dominance struggled to break through 64% in May, hinting at exhaustion. The current price action looks similar to previous attempts, lacking the oomph to push higher.
Predictions suggest Bitcoin’s dominance might fluctuate slightly before falling back into the low 63% range, possibly even lower. This drop could accelerate in early June, potentially paving the way for altcoins to shine.
The Rise of Altcoins?
The outlook suggests Bitcoin’s dominance rally is running out of steam. Despite recent altcoin losses, the projected decline in Bitcoin’s dominance to around 63.45% could trigger a significant shift. This decline would likely boost major altcoins like Ethereum, Solana, and Dogecoin. This could mark the beginning of a broader altcoin season.
Currently, Bitcoin’s dominance is hovering just above the crucial 63.45% level. A break below this could trigger an altcoin rally. Ethereum, for example, has already seen its dominance increase. However, if Bitcoin’s dominance manages to stay above 64% at the end of the month, this altcoin season prediction might not pan out.
