BTC Dominance Could Fall Further as Altcoins Prepare to Give the King a Fight

AMBCrypto’s analysis revealed that the Bitcoin [BTC] dominance chart has been decreasing. On the 10th of July, the dominance was 55.10%.

AMBCrypto’s analysis highlighted a decreasing trend in Bitcoin [BTC] dominance. At the beginning of July, the dominance stood at 0.5510. However, at press time, it was down to 0.5462.

Bitcoin’s dominance is a key indicator in relation to BTC’s price. This is because it showcases how BTC’s market cap compares to the market cap of other cryptocurrencies.

Continuing BTC dominance

When BTC’s dominance increases, it signifies that the coin is outperforming the average altcoin. However, a decreasing dominance indicates that BTC is losing momentum and altcoins are performing better.

On a Year-To-Date (YTD) basis, the coins have performed better. But over the last month, and in recent times, the opposite has been the case. If this continues, BTC might drop further despite the correction it has had.

At press time, BTC was trading at $58,257. This showed a 1.37% increase in the last seven days.

However, one indicator to check if Bitcoin is beginning to lose its superiority is the TOTAL2.

The TOTAL2 is also known as the total market cap of the crypto market excluding BTC. If it increases, it means that altcoins are showing a stronger performance than Bitcoin.

But when it decreases, it implies that BTC is leading the market resurgence.

Between 5 July and the time of writing, the TOTAL2 has increased by 8.01%, indicating that the prices of the average altcoins have been better than Bitcoin dominance.

Altcoins set to give the king a fight

The last time the indicator took such steps, the market cap jumped by 66.61% between February and March as the market cap also crossed $1.20 trillion. At press time, the market cap was $953.68 billion.

If this continues to increase, it can hit $1 trillion, possibly driving a closer move to the much-anticipated altcoin season. If this happens, the BTC’s correction would continue.

One factor that can drive an increase in the dominance is Ethereum [ETH]. Historically, when ETH’s price performance is better than BTC, it gives strength to other altcoins.

In turn, it reduces Bitcoin dominance. One catalyst market participants are looking forward to is the launch of the spot Ethereum ETFs.

However, it is also important to look at the ETH/BTC chart to see if the altcoin would take over Bitcoin dominance in the coming weeks.

When the ETH/BTC increases, it means that Ethereum is outperforming Bitcoin. But a decrease suggests otherwise. Previously, the ETH/BTC ratio was 0.051.

But as of this writing, that has increased to 0.053, meaning 1 ETH equaled 0.053 BTC. In addition, the Relative Strength Index (RSI) revealed that ETH was gathering a good level of momentum.

If sustained, this could drive the ratio to 0.056, and possible send Bitcoin dominance down.

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