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Bitcoin Dominance at a Key Level: Altseason Incoming?

What is Bitcoin Dominance?

Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that Bitcoin represents. It's a metric that shows how big Bitcoin is compared to all other cryptocurrencies combined.

How Does Bitcoin Dominance Affect Altcoins?

Generally, there's an inverse relationship. When Bitcoin dominance rises, altcoin prices often stagnate or decline. This might be because investors are moving funds into Bitcoin, perceived as a safer haven during market uncertainty.

Conversely, when Bitcoin dominance falls, altcoins often experience price increases. This could be due to investors seeking higher returns in the altcoin market or a perception that the broader crypto market is maturing beyond Bitcoin.

The weekly chart shows Bitcoin dominance reaching a critical resistance level. Historically, in 2016 and 2020, dominance reversals at this trendline preceded significant Altseasons (periods of strong performance for alternative cryptocurrencies).

While past performance doesn't guarantee future results, there's a possibility that a similar scenario could unfold this time around.

Here's what to consider:

Confirmation of Rejection: A clear rejection with a bearish candle formation at the resistance level would strengthen the possibility of an Altseason.

What do you think about this? Share your views in the comment section.

Thank You!

CoreCrypto1

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