Why The Bitcoin Dominance Reaching 71% Is Important For Altcoin Season To Begin
Bitcoin’s continued dominance remains a decisive feature of the current market cycle, with leading crypto assets gaining most of the inflows into the market. When writing, Bitcoin’s dominance After a 4% increase in the past 24 hours, the market across the market is 60.3%. It is worth noting that crypto analyst Rekt Capital Point to The 71% advantage level is an important threshold for crypto investors Waiting for Altcoin season.
Achieving 71% is crucial for Altcoin season
Bitcoin Advantage Chart Tracks Bitcoin’s market value relative to the entire crypto market Always throughout the whole process This cycle is the case even during the price correction period. Bitcoin’s dominance Driven by institutional needs After the introduction of spot Bitcoin ETFs and market dynamics, it is beneficial to BTC as a potential reserve for the country.
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The direct consequence of long-term Bitcoin dominance is the slow performance of the Altcoin market. Although some altcoins such as Solana and XRP have Try to surpass Bitcoin For a short period of time, capital has been circulating back to Bitcoin to prevent ongoing breakouts in the altcoin market. However, some analysts believe that a major shift may be very close, and now Bitcoin’s advantage has occupied a height for many years.
One such analyst is an analyst known as Rekt Capital on social media platforms. His analysis reveals a historical pattern where the Altcoin season emerges whenever Bitcoin’s advantage reaches a critical threshold and then faces rejection.
According to Bitcoin’s dominance chart, with his analysis, Bitcoin’s dominance has been rejected at three consecutive levels in the past three levels. Interestingly, each rejection dropped to the sign of multiple monthly candles by Bitcoin’s dominance, as altcoins outperform Bitcoin in those months.
The latest occurrence of this model is in the bull market in 2021. At the time, Bitcoin’s advantage briefly soared 72% before reversing the course. Once rejected, it entered a five-month downward trend, eventually stabilizing at 40% as Altcoins controls the market.
Will 71% trigger a new Altcoin season?
Although Bitcoin’s advantage has not reached 71%, it is still steadily moving upward towards this level. In particular, Bitcoin has an advantage of 60.3%, with no signs of slowing down. This means that investors repeat rejection of about 71% of rejections may have to wait longer to reach this level.
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If the 71% advantage level ends up being local top again, then historical patterns suggest that altcoins may grow rapidly. However, unlike previous cycles, Ethereum may not be leading the Altcoin season this time. Leading Altcoin Always working hard to get Momentum this cycle, as recent market dynamics have been reduced with XRP, solana, solana, solana, solana, And dogs, See more interest among crypto traders.
Featured images from LinkedIn, charts from TradingView.com
