Altcoins
Altcoin Season Finally Here? As Bitcoin Dominance Breaks Bearish Wedge Pattern
Over the past few months, the prices of many altcoins have dropped significantly, ranging from 30% to 70%. This sharp decline has made many analysts skeptical about the possibility of an altcoin season. However, recent developments in Bitcoin’s dominance are offering a glimmer of hope.
Meanwhile, popular cryptocurrency trader Titan of Crypto pointed out that Bitcoin’s dominance has broken a bearish wedge pattern. This means Bitcoin’s market share is decreasingwhich could be a sign that the altcoin season is starting.
Breakout in Bitcoin Dominance
In a recent analysis, Titan of Crypto confirmed a significant breakout of the rising wedge pattern on Bitcoin dominance charts.
According to the 1-week charts, a bearish wedge pattern has formed and a breakout has now been confirmed. This pattern typically signals a downtrend, indicating that Bitcoin’s dominance in the market is likely to decline from its current level of 39.97%.
Titan of Crypto analysis suggests that Bitcoin’s declining dominance could create a favorable environment Altcoin recovery environmentAfter experiencing weeks of corrections, this change could allow altcoins to regain value and market position.
However, Trader suggests that investors may see this as an opportunity to shift their attention to altcoins, expecting a potential gain.
Altcoins have started to outperform BTC
Looking at the weekly chartsBTC.D dropped from 62.69% in March 2021 to 40.89% in May of the same year. This period coincided with the all-time highs of many altcoins during the last bull market.
However, for market dynamics to resemble those of 2021, at least 75% of the top 50 altcoins must outperform Bitcoin. Decreasing Bitcoin Dominance allowed altcoins to gain popularity and surpass Bitcoin.
Bitcoin dominance has slightly decreased this week from 55.04% to 54.68%. This small decline suggests that some altcoins have started to outperform Bitcoin.
Read also: Top Altcoin Picks For Breakout Rally Gains Next Week