The post Altcoin season nears as Bitcoin dominance gets ‘overbought’ appeared on BitcoinEthereumNews.com.

Bitcoin price continued rising, reaching its highest point since February, as trade optimism rose ahead of the Federal Reserve decision. Bitcoin (BTC) climbed to $97,650 on Wednesday, up 30% from its lowest point this year. This latest rally has pushed Bitcoin’s market dominance to 65.70%, its highest level since January 2021. The dominance rose as many altcoins, especially Ethereum (ETH) continued to underperform the market. Ethereum’s market dominance has fallen to 7.5% from a peak of 22.27% in 2022. Its price is at risk of dropping to a record low against Bitcoin.  Bitcoin dominance has strengthened because BTC remains just a few points below its all-time high, while most altcoins are down significantly from their 2024 peaks. For instance, Ripple (XRP) has fallen by over 37%, while Cardano (ADA), Solana (SOL), and Tron (TRX) have slumped by over 50%, 51%, and 45% from their November highs. Wall Street demand has played a crucial role in supporting Bitcoin. Spot Bitcoin ETFs have seen strong inflows, with assets under management exceeding $111 billion and more than $40 billion in accumulated inflows. Bitcoin dominance is at risk of a pullback Bitcoin dominance chart | Source: TradingView The weekly chart shows that Bitcoin dominance bottomed out at 38.86% in 2021 and 2022, before staging a strong rally to 65.4% today. It remains above the 50-week and 100-week moving averages, while the Average Directional Index has climbed to 43. An ADX above 25 generally signals strong bullish momentum. However, the dominance has also formed a rising wedge pattern, while its Relative Strength Index has moved to the overbought level at 74.10. This is a sign that the dominance will have a reversal soon as investors rotate to altcoins. This rotation will likely happen when the dominance hits 72.92%, its highest level in December 2022. Altcoins…

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Filed under: News - @ May 8, 2025 2:23 am