Bitcoin’s market dominance has been increasing and recently hit its highest point since April 2021, reaching 57.4%. This rise happened as the overall cryptocurrency market faced a downturn. However, well-known crypto analyst EGRAG Crypto believes this upward trend might be slowing.
He thinks Bitcoin’s dominance could be close to its peak, with altcoins starting to perform better. This could mean that a new period of growth for altcoins is coming soon.
Bitcoin Surge or a Breakdown?
EGRAG Crypto’s analysis is based on observing Bitcoin’s dominance chart, which shows how much of the total cryptocurrency market Bitcoin represents.
According to EGRAG, a close above 58% on the monthly chart would be a strong bullish signal, suggesting that Bitcoin could soon capture an even larger share of the market, potentially reaching dominance levels as high as 73%.
However, EGRAG also highlights a contrasting scenario. The current formation on the chart is a rising wedge pattern, a technical pattern that often indicates a potential bearish reversal.
If this pattern plays out, Bitcoin’s dominance might not continue its upward trend. Instead, it could experience a significant drop. EGRAG points out that this breakdown could lead Bitcoin’s dominance to fall as low as 39%.
What Does This Mean for Altcoins?
A decrease in Bitcoin’s dominance could be a boom for altcoins, the alternative cryptocurrencies other than Bitcoin. When Bitcoin’s market share decreases, it often indicates that investors are putting more money into altcoins.
Although, the altcoin market has faced tough times recently, but things are starting to look up. Meanwhile, changes in U.S. regulations are making it easier for altcoins to thrive.
Major cryptocurrencies like Ethereum and Solana have received clearer regulatory guidance to follow, also XRP being labeled as a commodity has lifted some of the burdens that were holding the market back. These positive developments could be the start of a strong altcoin season.
