- BTC’s dominance has steadily declined in recent weeks.
- This is because the price is consolidating within a certain range.
The Resistance Bitcoin Faces [BTC] at the $70,000 price level has led to a steady decline in its market dominance.
BTC dominance refers to the coin’s market capitalization compared to the total market capitalization of all cryptocurrencies. Simply put, it tracks BTC’s share of the entire crypto market.
At the time of writing this was 56.27% per TradingViews facts.
Source: TradingView
Era of altcoins!
When BTC’s dominance declines, it generally presents opportunities for altcoins to gain traction and potentially outperform the leading crypto assets.
In a after on X (formerly Twitter), pseudonymous crypto analyst Jelle noted that BTC’s consolidation within a price range in recent weeks has led to a decline in its dominance.
However, once the coin successfully breaks out of this range, altcoins may experience a performance boost.
Another crypto analyst, Decentricstudio, noted That,
“BTC Dominance has been in a bearish divergence for 8 months.”
Once it starts falling, it could trigger an alts season where altcoin values grow significantly.
Crypto trader Dami-Defi added,
“The best is yet to come for altcoins.”
However, the expected altcoin market rally may not happen anytime soon.
According to Dami-Defi, while BTC dominance is unlikely to exceed 58-60%, the current outlook for altcoins suggests a possible short-term decline.
This implied that the altcoin market may fall even further before a substantial recovery begins.
BTC Dominance Will Shrink Further?
At the time of writing, BTC exchanged hands at $65,521. Per CoinMarketCaps According to data, the value of the king coin has fallen by 3% in the past seven days.
Now that there is significant resistance at the $70,000 price level, accumulation among daily traders has decreased. AMBCrypto found BTC’s key momentum indicators below their respective center lines.
For example, the coin’s Relative Strength Index (RSI) was 41.11, while the Money Flow Index (MFI) was 30.17.
At these values, these indicators showed that demand for the leading currency has plummeted, dragging the price further down.
Readings from BTC’s parabolic SAR indicator confirmed the continued price decline. At the time of writing, it was above the price of the coin, and has been so since June 10.
Source: BTC/USDT, TradingView
The parabolic SAR indicator is used to identify potential trend directions and reversals. When the dotted lines are placed above the price of an asset, the market is said to be in decline.
Read Bitcoin (BTC) price prediction 2024-2025
It indicates that the price of the asset has fallen and may continue to do so.
Source: BTC/USDT, TradingView
If this happens, the price of the coin could drop to $64,757.
