Bitcoin Dominance Aims At Historic Lows, Unprecedented Altcoin Season Potentially Ahead

While Bitcoin continues to take a beating in terms of dollars, the top cryptocurrency also continues to lose its share over the market cap. In fact, with the most recent support level breached, BTC dominance could be targeting historic lows.
Historic lows in BTC dominance could mean that an altcoin season unlike ever before is potentially ahead. Here’s a closer look at the metric that weighs Bitcoin against the rest of the crypto space and how it could impact altcoin performance.
Bitcoin Continues To Lose Cryptocurrency Market Dominance
At one point, there was only Bitcoin. As the industry grew, a metric was born called BTC dominance that made it more clear how much weight the top coin had compared to the rest of the market.
Prior to 2017, Bitcoin accounted for as much as 95% of the entire cryptocurrency market, but fell to a low of 35% less than a year later during what is considered to be the greatest altcoin season on record.
Related Reading | 2022: The Year The Secular Bitcoin Bull Run Could End
After reaching such extremes in 2018, by 2020, Bitcoin had recovered more than two-thirds of the market cap. Dominance topped out near 70% where it sharply reversed all throughout 2021.
At the close of the 2021 yearly candle, a several year trading range was officially breached. The well defined range is even more visible in the six-month BTC.D chart. And it could create the conditions necessary for an unprecedented altcoin season.

The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on TradingView.com
Unprecedented Altcoin Season Could End At 32% Dominance
With a decisive close on high timeframes, lower timeframe patterns could provide clues as to where dominance might bottom out once again.
Related Reading | Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern
The target of a head and shoulders top sent BTC.D to the dashed line, reinvigorating altcoins but still falling short of the mania seen during the 2017/2018 peak.

A descending triangle could target 32% dominance | Source: CRYPTOCAP-BTC.D on TradingView.com
With a potential descending triangle breaking down, the measure rule would make the target of the structure around 32% dominance. The target would suggest a move beyond the former historic low set years ago – and create the atmosphere needed for the aforementioned altcoin season mania.
But it all could come at the expense of Bitcoin and its undisputed reign as the number one cryptocurrency by market cap.
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com

Avatar

Related Articles

- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 26,973.23
ethereum
Ethereum (ETH) $ 1,872.90
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 305.45
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.507312
staked-ether
Lido Staked Ether (STETH) $ 1,871.58
cardano
Cardano (ADA) $ 0.365923
dogecoin
Dogecoin (DOGE) $ 0.072055
matic-network
Polygon (MATIC) $ 0.894375
solana
Solana (SOL) $ 20.71
litecoin
Litecoin (LTC) $ 94.93
tron
TRON (TRX) $ 0.075297
polkadot
Polkadot (DOT) $ 5.24
binance-usd
Binance USD (BUSD) $ 0.998689
shiba-inu
Shiba Inu (SHIB) $ 0.000009
avalanche-2
Avalanche (AVAX) $ 14.24
dai
Dai (DAI) $ 1.00
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 27,024.24
uniswap
Uniswap (UNI) $ 5.03
leo-token
LEO Token (LEO) $ 3.58
chainlink
Chainlink (LINK) $ 6.42
cosmos
Cosmos Hub (ATOM) $ 10.40
okb
OKB (OKB) $ 46.02
monero
Monero (XMR) $ 148.40
the-open-network
Toncoin (TON) $ 1.79
ethereum-classic
Ethereum Classic (ETC) $ 17.89
stellar
Stellar (XLM) $ 0.091640
bitcoin-cash
Bitcoin Cash (BCH) $ 113.26
internet-computer
Internet Computer (ICP) $ 4.71
true-usd
TrueUSD (TUSD) $ 0.998419
filecoin
Filecoin (FIL) $ 4.68
lido-dao
Lido DAO (LDO) $ 2.08
aptos
Aptos (APT) $ 8.53
quant-network
Quant (QNT) $ 115.58
hedera-hashgraph
Hedera (HBAR) $ 0.051667
crypto-com-chain
Cronos (CRO) $ 0.059105
arbitrum
Arbitrum (ARB) $ 1.16
vechain
VeChain (VET) $ 0.020023
near
NEAR Protocol (NEAR) $ 1.56
the-graph
The Graph (GRT) $ 0.131418
apecoin
ApeCoin (APE) $ 3.11
algorand
Algorand (ALGO) $ 0.148454
the-sandbox
The Sandbox (SAND) $ 0.565666
paxos-standard
Pax Dollar (USDP) $ 1.00
frax
Frax (FRAX) $ 0.997876
edgecoin-2
Edgecoin (EDGT) $ 1.00
eos
EOS (EOS) $ 0.889948
rocket-pool
Rocket Pool (RPL) $ 48.75
render-token
Render (RNDR) $ 2.57