Bitcoin Dominance Nears 71% Is It a Warning or the Calm Before Altcoin Season?
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Bitcoin is once again dominating the crypto conversation, not just in price, but in overall market presence. According to trader Rekt Capital, BTCs dominance has now climbed past 65%, marking a key milestone that could trigger major changes in the market.
So, the big question isare we looking at a warning sign for altcoins, or is this just the quiet before a full-blown altcoin season kicks off?
Bitcoin Dominance On Its Way To Hit 71%
Over the past several months, Bitcoin dominance has been steadily climbing, meaning Bitcoin is now taking up a larger share of the total crypto market. This usually happens when investors are more focused on Bitcoin than other cryptocurrencies.
A recent chart shared by crypto analyst Rekt Capital shows how Bitcoins dominance is now approaching a critical resistance zone near 71%a level it has struggled to break in past cycles.
Right now, Bitcoin sits at 65.38% dominance, just about 6% away from that mark. If this trend continues, the market could be nearing an important turning point.
Ethereums Struggles Against Bitcoin
At the same time, Bitcoins price has jumped to $97,000, up 30% from its lowest point this year. This strong price performance is part of why Bitcoin dominance is rising, investors are choosing BTC over other coins.
On the other hand, altcoins are losing momentum. Ethereum, the second-largest cryptocurrency, has seen its market share shrink to just 7.5%. Thats a big drop from its peak of over 22% back in 2022.
Even though Bitcoin is rallying, Ethereum isnt following the same path. In fact, Ethereums value compared to Bitcoin is now nearing record lows.
Are Altcoins About to Wake Up?
But if Bitcoin dominance keeps rising, altcoins may continue to lag. But if that 71% level holds strong and triggers another reversal, it could be the start of an altcoin season, a period when smaller coins gain strength while Bitcoin cools off.
Currently, the Altcoin Season Index is at 29, suggesting that the altcoin season still has some time left. For the season to fully kick in, at least 50 out of 75 altcoins need to outperform Bitcoin.
Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
