Bitcoin Dominance Stalls Altcoin Season: Analyst Predicts Market Shift
Bitcoin Dominance Stifles altcoin Season Prospects
Bitcoin’s Market Control Remains Strong
The dominance of Bitcoin (BTC.D) continues to influence the cryptocurrency landscape, dampening expectations for an upcoming altcoin season. Recent market fluctuations have not diminished Bitcoin’s stronghold, as analysts note that capital remains heavily invested in the leading cryptocurrency. This persistent dominance is seen as a barrier to significant movements in altcoins, which may continue until a substantial change in market dynamics occurs.
Technical Analysis Highlights Bitcoin’s Strength
Recent insights from crypto analyst Tony Severino reveal that Bitcoin’s market dominance has surged to 65.72%. Both monthly and Relative Strength Index (RSI) metrics have surpassed the critical threshold of 70, indicating robust market conditions. At the time of Severino’s analysis, the monthly RSI was recorded at 73.19, while the weekly RSI stood at 70.58, both suggesting overbought conditions.
Severino presented a dual-chart analysis of Bitcoin Dominance and RSI across both weekly and monthly timeframes. The charts illustrate a consistent upward trend in BTC.D since late 2023. The RSI values remain significantly above their respective Moving Average (MA) benchmarks, reinforcing the notion of sustained strength rather than imminent market fatigue.
Altcoins Likely to Lag Without Market Shift
As long as Bitcoin’s dominance maintains these elevated RSI levels, Severino predicts that altcoins will continue to struggle, further postponing the anticipated altcoin season. He asserts that a genuine upward movement for altcoins will only materialize when BTC.D begins to decline and RSI values drop below 70, signaling a shift in market sentiment that could facilitate capital movement towards alternative cryptocurrencies.
Until such a reversal occurs, the current BTC.D and RSI trends strongly suggest that hopes for an altcoin season in this cycle may be overly optimistic.
Potential Bullish Signals in Bitcoin Dominance
In a separate update, Severino pointed out the formation of a Dragonfly Doji on the weekly BTC.D chart. With only a few days remaining in the weekly session, this distinctive candle pattern is still taking shape but currently resembles the classic Dragonfly Doji, which features a long lower wick and a closing price near the opening.
Typically, this pattern is interpreted as a bullish reversal signal when it appears at the end of a downtrend. However, its emergence during an ongoing uptrend in BTC.D complicates the technical outlook.
Severino suggests that the Dragonfly Doji could either indicate a continuation of the current upward momentum or a brief pause in market direction. Should the candle develop into a larger bullish body and close above the 65.65% mark, it may confirm the strengthening of Bitcoin’s dominance over altcoins.
