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

While Bitcoin continues to take a hit in terms of the dollar, the top cryptocurrency is also continuing to lose market cap. In fact, with the breakout of the latest support level, BTC dominance may target historic lows.

Historic dips in BTC dominance could mean altcoin season unlike ever before may be coming. Here’s a closer look at the scale that weighs Bitcoin against the rest of the crypto space and how it might affect the performance of the altcoin.

Bitcoin Continues to Lose Dominance in the Cryptocurrency Market

At one time, there was only Bitcoin. As the industry grew, a metric called BTC dominance was born which made it even more clear how much weight the first coin had compared to the rest of the market.

Prior to 2017, Bitcoin represented up to 95% of the entire cryptocurrency market, but it fell to 35% less than a year later during what is considered the greatest crypto season ever.

Related reading | 2022: The Year Bitcoin’s Secular Rally Could End

After reaching these extremes in 2018, by 2020, Bitcoin has regained more than two-thirds of its market capitalization. Dominance topped nearly 70% as it reversed sharply throughout 2021.

At the conclusion of the annual 2021 candlestick, a multi-year trading range was officially breached. The well-defined range is more visible in the 6-month BTC.D chart. It could create the conditions for an unprecedented alternative currency season.

The yearly (left) and six-month (right) BTC.D chart | Source: CRYPTOCAP-BTC.D on TradingView.com

Altcoin’s Unprecedented Season Could End With 32% Dominance

With decisive closes on the higher time frames, lower time frame patterns can provide clues as to where dominance may be waning again.

Related reading | Bitcoin Falling Flat: Examining a Rare Bullish Corrective Pattern

The head and shoulders target sent BTC.D to the dashed line, activating altcoins but still less than the mania seen during the 2017/2018 peak.

BTC.D_2022-01-04_13-03-42

A descending triangle could target 32% dominance | Source: CRYPTOCAP-BTC.D on TradingView.com

With the collapse of the possible descending triangle, the base of the measure will make the target structure about 32% of dominance. The goal could signal a previous historical minimum set years ago – and create the necessary atmosphere for the aforementioned altcoin season mania.

But all this could come at the expense of Bitcoin and its undisputed reign as the number one cryptocurrency by market capitalization.

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Featured image from iStockPhoto, Charts from TradingView.com