A new Alt Season for Bitcoin Awaits

Rekt Capital came up with an interesting observation today. Bitcoin’s market dominance is at an empirical high of 71%. But the Alt season is about to begin.  

According to the latest analysis, Bitcoin needs to maintain a continuous market cap of 70% to begin “alt season.”  

Bitcoin Dominance Can Increase 

This week, Bitcoin showed exceptional performance. The token’s market dominance reached a 4-year high. But the question remains- Did Bitcoin do that alone? Probably not. 

The recent inflation and price correction of the major altcoins played a critical role.  

Currently, Bitcoin’s dominance is 61%. But it reached 64.3%, as TradingView confirmed.  

How can the dominance increase?  

The improvement of BTC price strength depends largely on the market prospects of altcoins going forward.  

Meanwhile, Bitcoin experienced a dip of 55% in December 2024. That was the dominance bottom, the ending of the alt season.  

How will the new Alt season begin?  

Most market analysts believe that altcoin revival is possible. But here’s the catch. To do so, altcoins must gain another 16% using assets at the current level.  

Altcoin Corrections that helped Bitcoin  

The altcoins that could encounter deeper corrections are ETH, Solana, Polka Dot, Binance 2, TRON, etc. In the meanwhile, the BTC dominance would become more apparent. On the same note, a loss of 50 to 85% might also be imminent.  

This is an ideal scenario for Alt season. It is on a positive note compared to the last one. There might also be a bearish downtown in the market. This divergence will be easily captured by the relative strength index which is published weekly.  

What does the current trend suggest?  

If current trends were to be true, then there would soon be a change to the chronic BTC dominance. Meanwhile, the market will be able to see new higher peaks.