Technical Analysis

BTC dominance nears 60%: Will altcoins surge soon?

Published: Oct 18, 2024

BTC dominance nears 60%, setting up a potential altcoin rally. Will Bitcoin maintain control, or are altcoins ready for their moment in the spotlight?

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Bitcoin's dominance is hitting the ceiling. BTC dominance has been slowly grinding upwards and recently hit 58.8%, just below the critical 60% level. This dominance spike has been a steady climb, but we're nearing the point where the trend could reverse, unleashing the altcoin market.

Resistance: The 60% level is a major resistance for BTC dominance. The rising wedge formation that's been in place for over two years is approaching its peak.
Potential scenario: A push towards 60% is likely, but once dominance hits this ceiling, we expect a breakdown. This will be the signal for money to flow out of Bitcoin and into altcoins, sparking an altcoin rally.
Market dynamics: Bitcoin is soaking up capital for now, but this could be its final push before the market rotates back to altcoins. The longer BTC dominance hovers near this level, the stronger the eventual breakdown will be.

Conclusion

BTC dominance is peaking, and once it hits 60%, we expect a significant shift in market dynamics. This could be the trigger for alt season, with altcoins finally getting their moment in the spotlight.