Over the past few months, the prices of many altcoins have fallen significantly, by 30% to 70%. This sharp decline has made many analysts skeptical about the chances of an altcoin season. However, recent developments in Bitcoin's dominance are providing a glimmer of hope.
Meanwhile, Prominent crypto trader Titan of Crypto has pointed out that Bitcoin's dominance has broken a bearish wedge pattern. This means Bitcoin's share of the market is decreasing, which could be a sign that altcoin season is starting.
Breakout in Bitcoin Dominance
In a recent analysis, Titan of Crypto has confirmed a significant breakout in 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 downward trend, indicating that Bitcoin's dominance in the market is likely to drop from its current level to 39.97%.
Titan of Crypto's analysis suggests that the decline in Bitcoin dominance could create a favorable environment for altcoins to recover. After experiencing weeks of corrections, this shift might allow altcoins to regain value and market position.
However, Trader suggests that investors could see this as an opportunity to shift their focus towards altcoins, expecting a potential gain.
Altcoin Began To Outperform BTC
Looking at the weekly charts, BTC.D fell from 62.69% in March 2021 to 40.89% in May of the same year. This period coincided with many altcoins reaching their all-time highs during the last bull market.
However, for the market dynamics to resemble those of 2021, at least 75% of the top 50 altcoins must perform better than Bitcoin. The decrease in Bitcoin dominance allowed altcoins to gain attraction and outperform Bitcoin.
Bitcoin's dominance has decreased slightly this week from 55.04% to 54.68%. This small drop suggests that some altcoins have started to outperform Bitcoin.