Bitcoin’s recent price rise to $97,650 has pushed its dominance to 65.70% as altcoins struggle, particularly Ethereum, which has dropped significantly. Wall Street demand for Bitcoin remains strong, but indicators suggest Bitcoin’s dominance may soon reverse, leading to a potential altcoin season as market patterns show bullish signs for altcoins.
Bitcoin has recently soared, reaching $97,650—a notable increase of 30% since the year’s low. This price surge comes as traders express optimism ahead of an anticipated Federal Reserve decision. Currently, Bitcoin’s market dominance stands at 65.70%, marking its highest level since January 2021. Interestingly, while Bitcoin performs well, many altcoins, particularly Ethereum, have faltered significantly.
Ethereum’s market share plummeted from a peak of 22.27% in 2022 to a mere 7.5%. Its price against Bitcoin appears at risk of hitting all-time lows. This decline in altcoins is highlighted by Ripple’s 37% drop, alongside even steeper falls for Cardano (more than 50%), Solana (51%), and Tron (45%) since their highs last November. Bitcoin’s strength is a stark contrast, fuelled partly by Wall Street’s growing demand and the impressive inflows seen in spot Bitcoin ETFs, now exceeding $111 billion.
Despite Bitcoin’s robust performance, there are signs that its dominance could soon experience a pullback. Analysis of recent weekly charts reveals that while Bitcoin dominance has surged from a low of 38.86% to the current figure, it is also exhibiting a rising wedge pattern. With the Relative Strength Index hitting a concerning overbought level at 74.10, a reversal could be on the horizon. Speculation suggests that if dominance hits 72.92%, which occurred in December 2022, shifts towards altcoins will likely begin.
On the altcoin front, charts depict a bullish megaphone pattern among altcoins, excluding Bitcoin. This formation consists of two diverging upward trendlines. Recently, the market cap has retreated to the lower boundary of this pattern, hinting at a possible rebound as investors target the upper trendline. Additionally, altcoins appear to be completing a bullish harmonic XABCD pattern and are currently set up for what could be an exciting final CD leg, bolstering the hopes of an incoming altcoin season.
