Bitcoin has experienced a significant price surge since Tuesday, following the Federal Reserve’s announcement of a 50 bps interest rate cut. This move pushed BTC past the $62,000 mark, a key psychological level that has shifted investor sentiment from cautious to optimistic. The breakthrough is seen as a critical turning point for the market, with BTC now testing local supply levels.
Related Reading: Dogecoin Eyes $0.11 Breakout As RSI Signals A Shift – Can DOGE Target New Highs?
As BTC continues to climb, analysts focus on Bitcoin dominance, which may be on the verge of a deep correction. A decline in Bitcoin’s dominance could trigger a new phase of aggressive gains for altcoins. Historically, when BTC dominance tops out, altcoins tend to rally as they gain market share, driven by increased capital inflows.
Analysts are now watching for signs of this trend, suggesting that a correction in Bitcoin dominance could start a new bull cycle for altcoins. With BTC testing key resistance levels, the market could soon see a shift in momentum, opening the door for altcoins to pump and outperform BTC in the near term aggressively.
Bitcoin Dominance Topping Out
Following last week’s crypto rally, altcoins have surprised investors with their strong performance. Typically, when altcoins start outperforming Bitcoin, speculation about the onset of a new “altseason” emerges. Analysts and investors are now closely monitoring BTC dominance, which measures BTC’s share of the total cryptocurrency market. Recent insights suggest that BTC dominance may be nearing its peak—or has already found it.
Prominent crypto analyst Ali shared a technical analysis on X, highlighting the potential for a sharp drop in Bitcoin dominance.
According to his analysis, BTC dominance could dip to 47%, marking a significant shift in market dynamics. Ali believes this sets the stage for an altseason, when altcoins outperform BTC, attracting significant capital inflows and driving explosive gains.
Historically, when BTC dominance falls, it tends to do so quickly, leading to substantial price increases for altcoins. The last time BTC dominance dipped significantly, altcoins skyrocketed, resulting in massive profits for investors who had positioned themselves ahead of the trend.
Related Reading: Bitcoin (BTC) Metrics Point To Local Bottom At $49,500 – Details
As Bitcoin continues to test critical levels, many are eyeing a potential altseason with optimism, believing that the next major moves in the market could come from altcoins outperforming the flagship cryptocurrency. Investors are now preparing for what could be a lucrative period ahead.
BTC Testing Supply Levels
Bitcoin (BTC) is trading at $63,543 after five consecutive days of attempting to break above the crucial daily 200 moving average (MA) at $63,922. If BTC successfully clears this resistance level, it could trigger a further price surge toward the local highs of $65,000, setting the stage for a larger rally and a potential push toward new all-time highs.
Reclaiming the daily 200 MA and turning it into a support level would provide BTC with the momentum needed to consolidate and maintain prices above the mid-range, strengthening the bullish narrative.
However, if BTC fails to reclaim the $65,000 level soon, the market may see a retest of lower demand around $60,000. This level could act as a critical support zone and provide bulls another opportunity to regain control.
Related Reading: Bitcoin Long-Term Holders Locking Up Coins: Is BTC About To Target $65,000?
Failing to hold at $60,000 could open the door to a deeper correction, dampening the recent bullish sentiment. Investors are now closely watching Bitcoin’s price action to see if it can clear these key levels and ignite the next major move.
Featured image from Dall-E, chart from TradingView