The crypto markets are experiencing heightened activity as volatility increases, thereby affecting the majority of altcoins. Bitcoin price demonstrated massive strength in the past few days, reviving the possibility of forming a new ATH before the end of the month. This caused the altcoins to rise above their respective consolidated zones and rise above their resistance. However, it has been quite evident that the BTC prices do correct and hence the altcoins as well. This could be considered an opportunity, as this consolidation could end soon.
The Bitcoin dominance chart has broken down a key support line, which has been acting as support for over 5 months. This signals a money rotation starting to flow from Bitcoin into Altcoins, potentially getting the dominance down to the psychological 60% level. The last time this happened was in November/December 2024, when the altcoins experienced a strong push. On the other hand, the altcoin market capitalization is testing significant resistance, and as the BTC dominance is looking weak, a good bounce could be on the horizon.
- Also Read :
- Altcoin Season About to Begin? Here’s Why Crypto Experts Think So
- ,
Altcoin Market Cap Targets $1.9T Breakout
The above chart shows the market capitalization excluding Bitcoin & Ethereum, which are trading within a bull flag. The levels have reached the edge of the consolidation, and a breakthrough could lead it to the previous top, close to $1.13 trillion. This could be when the real Altseason season may begin after breaking above the previous top. Considering the current chart patterns, the next top for the altcoin market capitalization could be somewhere around $1.9 trillion.
On the other hand, the altcoin market capitalization chart is displaying a similar pattern to that it traded during the 2021 bull run. The capitalization broke above the neckline of the head and shoulder pattern and faced some bearish consolidation. However, the levels took off finely from there and marked the top. Currently, the levels appear to be at the foot of a massive explosion, and hence, the top for the current cycle could be larger than expected.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
A drop in BTC dominance often signals capital rotating into altcoins, sparking potential altcoin rallies.
With BTC dominance weakening and altcoin caps rising, market conditions suggest a favorable setup for altcoin investments.