The Return Of Altcoin Season: Why Bitcoin Dominance Must Fall To 62%

Scott Matherson

1 month ago

2 mins read

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One of the reasons that the altcoin season seemed to not have begun until now is the fact that Bitcoin has dominated the market recovery, and thus, the BTC dominance remains very high. For the altcoin season to actually begin, past market performances show that there needs to be a major decline in the Bitcoin dominance. This is the ultimate trigger the market needs to confirm that altcoins will begin their own independent run.

Bitcoin Dominance Needs To Fall To 62%

The Bitcoin dominance is still trending at a high 64%, and this continues to be a thorn in the side of altcoins. With the dominance this high, the Bitcoin price continues to dictate where the market goes and has seen altcoins suffer crashes as a result of even the tiniest movement triggering a decline in prices.

However, crypto analyst Quantum Ascend has pointed out an interesting formation in the chart, which is a 7-wave crashing pattern. This pattern has been completed, and this signals a possible drop in the Bitcoin dominance as time goes on. The last phase of the 7-wave pattern was when the dominance hit a peak of 64.6% before declining back down toward 64%.

This pattern suggests that the Bitcoin dominance could possibly drop to 62%, which would be good news for those waiting for the altcoin season. The last time that the dominance was this low was back on May 14, and altcoins had rallied hard as a result.

For this decline to be completed, the crypto analyst reveals that confirmation lies below 63.45%, as this is the Wave 6 lows. Once this support is broken, a sharp drop toward 62% is expected from here. As the analyst explains, “real momentum kicks in under 62%,” and this is when altcoin season moves with full force.

Bitcoin dominance chart from TradingView.com — BTC dominance remains high above 64% | Source: Market Cap BTC Dominance on TradingView.com

Altcoin Season Is Not Over

The topic of a possible altcoin season is currently one of the most debated in the crypto community as market participants remain split on where it is in the cycle. Some have said there will be no altcoin season similar to what was seen in 2021, while others have maintained that it is still possible.

One analyst on the X (formerly Twitter) platform has lent their voice, pushing the narrative that the altcoin season is far from over. For a 2021-style altcoin season to happen, though, the crypto analyst says the altcoin market, which excludes the top 10 cryptos by market cap, must break above the $470 billion resistance like it did in previous cycles. Once this happens, then they expect the altcoin season to begin.

Featured image from Dall.E, chart from TradingView.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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