Altcoin Season Looms as Bitcoin Dominance Hits Rejection Zone

Crypto analysts have recently speculated about the potential onset of an altcoin season, driven by Bitcoin's dominance reaching a significant rejection zone. El Crypto, a prominent analyst, suggested that Bitcoin's dominance has touched a zone that has historically led to rejection over the past year and a half. This, coupled with the Stochastic Relative Strength Index (RSI) being in the overbought area and a bearish cross occurring, indicates that the market may be ripe for an altcoin rally.

CryptoElites, another analyst, echoed this sentiment, asserting that Bitcoin's dominance has peaked and that a massive altcoin rally is imminent. He further noted that if the dominance of stablecoins like USDT and USDC breaks down, it could signal the official start of the altcoin season. Kevin Capital also provided a bullish outlook, highlighting the global liquidity index and its correlation with the price of Dogecoin, suggesting that market participants should pay close attention to this indicator.

Despite the current downtrend affecting both Bitcoin and altcoins, the potential for an altcoin season could see these digital assets decouple from Bitcoin and outperform. Historically, Ethereum has led these rallies, but its underperformance in the current cycle suggests that other altcoins might take the lead this time.

However, data from Blockchain Center indicates that it is still Bitcoin season, as the flagship cryptocurrency continues to outperform most altcoins. In the past 90 days, only a handful of the top 50 coins have outperformed Bitcoin, including Mantra, GateToken, Monero, LEO, Tron, and FastToken. For an altcoin season to be officially declared, 75% of the top 50 coins would need to outperform Bitcoin over the last 90 days. Currently, almost all coins have witnessed declines, with Bitcoin suffering a 22% drop, which is less than the declines seen by many altcoins.

At the time of writing, the Bitcoin price is trading at around $80,900, down over 1% in the last 24 hours. The total market cap excluding Bitcoin stands at approximately $939.29 billion. The current market dynamics suggest a potential shift towards an altcoin season, but it remains to be seen whether this will materialize in the near future.