- BTC.D fell 2.24% as an investor predicted a new altcoin season.
- 75% of altcoins have outperformed Bitcoin in the last 90 days.
The past month has been Bitcoin’s [BTC] dominance [BTC.D] has experienced continued rejection at the $58 resistance level.
The continued inability to break through this stubborn resistance level has led to increased enthusiasm among altcoin holders.
Bitcoin dominance stood at 56.71 at the time of writing, after a decline of 0.03% over the past day. This is a sharp decline from 58% a week ago.
As such, the market cap was $1.24 trillion, while the total crypto market was $2.18 trillion.
Source: CoinCodex
Therefore, this decline makes BTC take over 1.55% of global assets, which is far below 2.75% of total crypto assets.
Historically, BTC.D’s decline is good news for altcoins as they tend to rise. So, the current trend has made analysts think about the future trajectory of BTC and altcoin.
As far as, Johnny Crypto has suggested a potential altcoin season, citing the formation of a rising wedge pattern.
What the BTC.D drop means for altcoins
In his analysis, Johncy stated that Bitcoin’s dominance formed a rising wedge pattern on the weekly charts, which is a bearish signal.
Source:
Therefore, a breakdown of this channel will confirm the bearish outlook for the crypto.
If BTC continues to trade sideways as it has fallen over the past week, or bullish as its dominance wanes, it could signal altcoin season.
What this means is that if Bitcoin’s dominance continues to decline, altcoins will gain more market share, causing altcoins to outperform BTC.
However, one of the best ways to determine altcoin performance against BTC is to use the ETH/BTC ratio.
Source: Coinmarketcap
As such, ETH/BTC is down 2.40% over the past 24 hours. However, overall, ETH has outperformed BTC. In fact, it is up 6.28% against BTC over the past 30 days.
This indicates improved performance of altcoins against BTC on the monthly charts as its dominance has dropped from 58% to 56.71.
Source: CoinMarketCap
Similarly, memecoins have seen a strong rebound, with their market capitalization rising from $43.7 billion to $50.9 billion on the weekly charts.
Source: Blockchain Center
Moreover, several altcoins have outperformed Bitcoin over the past three months. Especially Sui [SUI] leads with 183.5%, Bittensor [TAO] with 136.1%, Aave [AAVE] with 61%, and dog hat [WIF] with 56.4%.
That’s why 75% of the Top 50 coins outperformed Bitcoin over the past 90 days.
Source: Blockchain Center
Finally, the Altcoin seasonal index was at 37 at the time of writing, up from 33 in the past week and down from a high of 47 from 15 days ago, while the BTC seasonal index was at 25.
Read Bitcoin’s [BTC] Price forecast 2024–2025
Such a scenario indicates an increased demand for altcoins among investors compared to Bitcoin.
Simply put, altcoin season is slowly gaining momentum and the potential for upside continues to increase.