Bitcoin Dominance Breaks Bearish Wedge Pattern, Signaling a Potential Altcoin Season Start

Titan of Crypto's analysis predicts Bitcoin dominance could fall to 39.97%. For altcoin season, at least 75% of the top 50 altcoins must outperform Bitcoin.

Recent analysis has shown a breakout in the rising wedge pattern on Bitcoin dominance charts. After several weeks of price corrections, this breakout could mark the beginning of altcoin season.

Prominent crypto trader Titan of Crypto has shared an updated analysis highlighting a breakout in the rising wedge on Bitcoin dominance 1-week charts. This breakout confirms a bearish wedge pattern on the weekly time frame.

After weeks of corrections, this could be the time for alts to recover and more.

Typically, a bearish wedge pattern indicates a downward trend in the market. Hence, a breakout from this pattern suggests that Bitcoin’s dominance in the market is likely to drop from its current level of 55.04% to 39.97%.

As Bitcoin’s dominance decreases, it could create a favorable environment for altcoins to begin their recovery. After enduring weeks of corrections, this shift might allow other cryptocurrencies to regain value and market position.

However, as Bitcoin’s dominance drops, investors could anticipate a shift in the market towards altcoins, suggesting a potential opportunity for traders to adjust their strategies accordingly.

For the market dynamics to resemble those of 2021, at least 75% of the top 50 altcoins must perform better than Bitcoin. This period, which saw many altcoins reaching their all-time highs, coincided with a decrease in Bitcoin dominance from 62.69% in March 2021 to 40.89% in May of the same year.

This decrease in Bitcoin’s dominance allowed altcoins to gain attraction and begin outperforming Bitcoin.

Bitcoin’s dominance has seen a slight decrease this week, moving from 55.04% on Monday to 54.68% as of Friday. This small drop indicates that some altcoins have started to show strength against Bitcoin.

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