Here’s What This Means for the Altcoin Season
The post Here’s What This Means for the Altcoin Season appeared on BitcoinEthereumNews.com.
Bitcoin dominance has claimed a high last seen in the previous bull run, leading to discussions around a potential altcoin season. Notably, Bitcoin dominance surged to a new four-year high, reaching 64.94% today, May 2. This peak, the highest since January 2021, is a product of Bitcoin’s recent strong performance. Bitcoin Dominance up 13% Since December 2024 Specifically, since April 21, Bitcoin’s price has climbed from $85,197 to a peak of $97,470 on May 1, maintaining levels above $97,000 at the time of writing. This price surge, along with relatively slower growth in altcoins, has boosted Bitcoin dominance. Nonetheless, this builds on an uptrend that has persisted since last December. The dominance rate has risen from 57.22% in December 2024, gaining over 13% in five consecutive months. However, this rise has now brought Bitcoin dominance into a historically significant resistance zone around the 65% mark. In the previous bull market of 2021, dominance at this level triggered a sharp reversal. Back then, Bitcoin dominance touched a near four-year high of 73.63% in early January 2021 but quickly fell, closing the month at 63.09%. Interestingly, February 2021 saw a short-lived rebound to 64.83%, but resistance held firm, and dominance eventually plummeted to 39.56% by September 2021. That drop, which lasted for over seven months, coincided with the explosive growth of altcoins, leading to the altcoin season. What the Recent Bitcoin Dominance Peak Means for Alt Season Now, Bitcoin dominance is again testing that barrier. The monthly Relative Strength Index (RSI) for dominance has reached an all-time high of 72.22, signaling overbought conditions. Historically, such levels have preceded pullbacks. Bitcoin Dominance 1M Chart If Bitcoin dominance fails to break this resistance, a correction could ensue. The first significant support lies at the 0.786 Fibonacci retracement level of 59.35%, followed by the next…
Filed under: News - @ May 2, 2025 8:19 pm