Altcoin Rally Imminent? Bitcoin Dominance Nears Top as Analyst Warns: 'Don't Blink'

With Bitcoin's dominance reaching multi-year highs and its price rising near $68k, the crypto market is going through a pivotal time.

Bitcoin’s dominance has reached multi-month highs as the crypto asset continues to rally. However, analysts believe this could be setting the stage for a shift in market tendencies.

Bitcoin Dominance Nears Top as BTC Rally Continues

Bitcoin (BTC) price has rallied sharply over the past week, rising from the $60k to the $68k range.

This rally has also seen BTC dominance, a measure of the asset’s market share relative to other crypto tokens, reach a 42-month high.

Typically, when Bitcoin rallies, its dominance tends to increase as investors shift their funds into the apex crypto in anticipation of further gains.

However, some analysts believe that this trend may be nearing its peak, which could pave the way for a pivot in market dynamics.

One analysis suggests that if Bitcoin rallies toward $80k to $90k in the upcoming month, BTC dominance could increase even further to 61%.

This development would mark a significant shift from the lows of around 36% observed earlier this year.

Altcoin Season Imminent as Bitcoin Dominance Peaks

Both Ash Crypto and EGRAG CRYPTO foresee a shift in market dynamics favoring altcoins.

EGRAG CRYPTO highlights that when Bitcoin dominance falls while its price surges, it creates an ideal environment for altcoin growth.

The analyst adds that this development is setting the stage for “the final wave of this bull.”

However, the analyst also notes that this move will be fast-paced, advising followers to stay engaged and avoid blinking.

Further analysis by Ash Crypto draws parallels to the previous market cycle, recalling that Bitcoin broke its all-time high (ATH) of $19,500 on December 16, 2020.

Bitcoin dominance peaked 18 days later, on January 3, 2021, which was followed by five months of exceptional altcoin performance.

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This analysis suggests that a similar trend may be unfolding, with Bitcoin’s recent rally to $68,000 potentially marking the beginning of the next leg up for altcoins.

However, the analyst notes that Bitcoin may still outperform altcoins for a few weeks as it approaches new all-time highs.

Once Bitcoin establishes a clear uptrend beyond its previous record, altcoins are likely to start outpacing the apex crypto.

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