Bitcoin Dominance Hits 4-Year Peak, Analysts Split on Altcoin Future

Bitcoin’s market dominance has surged to 64%, its highest in four years, stirring debate among experts about the future of altcoins. While some analysts foresee a potential altcoin season, others warn that Bitcoin dominance may continue to suppress altcoins, especially if it surpasses 66%. Technical indicators regarding Tether dominance also suggest possible shifts, leading to varied predictions about the altcoin market’s prospects in 2024 and beyond.

Bitcoin’s market dominance has risen to 64%, marking its highest level in four years. This surge has led to differing expert opinions regarding the future of altcoins. Some analysts anticipate an altcoin season, while others believe that increased Bitcoin dominance will continue to hinder altcoin performance.

Bitcoin dominance (BTC.D) indicates the share of Bitcoin in the total cryptocurrency market capitalisation. A rise suggests Bitcoin is outperforming other cryptocurrencies, while a decline implies greater interest in altcoins. Since late 2022, Bitcoin dominance has steadily increased, reaching its current levels last seen in early 2021.

Benjamin Cowen, founder of Into The Cryptoverse, noted that Bitcoin’s dominance is even greater at 69% when excluding stablecoins. He anticipates a potential correction in altcoins before any significant gains can materialise in the market. Cowen stated that altcoin pairs need to decline before they see an upward trajectory.

Nordin, of Nour Group, cautioned that Bitcoin dominance is approaching levels observed during the 2020 bear market’s peak, signalling capital rotation away from altcoins. A breach above 66% dominance could exacerbate selling pressure on altcoins, postponing the onset of an altcoin season.

Conversely, analyst Mister Crypto suggested that Bitcoin’s dominance might form a long-term descending triangle, indicating possible bearish momentum. This pattern could prolong Bitcoin’s market control before a broader correction allows altcoins to flourish.

An analyst pointed out that Bitcoin dominance is testing a resistance zone between 64% and 64.3%. A retracement could enable altcoins to gain momentum, with some possibly emerging as leading performers if capital shifts away from Bitcoin.

Junaid Dar, CEO of Bitwardinvest, offered a bullish outlook, stating that if Bitcoin’s dominance falls below 63.45%, it could ignite a strong altcoin rally, creating opportunities for profit. He remarked that altcoins are currently stagnating but suggested this could change soon.

Moreover, trends in Tether dominance (USDT.D) are believed to signal a potential altcoin season. Analysts observe USDT.D reaching a resistance zone, hinting at a possible correction which might facilitate capital movement into altcoins. The prevailing sentiment is that the dynamics between Bitcoin’s dominance and stablecoin trends could determine the altcoin market’s direction in the near future.

Ultimately, while Bitcoin currently maintains a stronghold over the market, the next movements in altcoins remain contingent upon market dynamics and technical signals.