Bitcoin Dominance Drops 7% Altcoin Season Looms

Bitcoin's dominance in the cryptocurrency market has been a significant factor in the delay of the altcoin season. The market recovery has been largely driven by Bitcoin, with its dominance currently at 64%. This high level of dominance has made it difficult for altcoins to gain traction, as even minor movements in Bitcoin's price can trigger declines in altcoin prices.

Crypto analyst Quantum Ascend has identified a 7-wave crashing pattern in the Bitcoin dominance chart, which suggests a potential drop in Bitcoin's dominance. The last phase of this pattern saw the dominance peak at 64.6% before declining back to 64%. This pattern indicates that Bitcoin's dominance could drop to 62%, a level last seen on May 14, when altcoins experienced a significant rally.

For this decline to be confirmed, the Bitcoin dominance must fall below 63.45%, which is the Wave 6 lows. Once this support is broken, a sharp drop toward 62% is expected. According to the analyst, "real momentum kicks in under 62%," which is when the altcoin season is expected to gain full force.

The possibility of an altcoin season is a hotly debated topic in the crypto community. Some analysts believe that a 2021-style altcoin season is still possible, while others are skeptical. One analyst on the X platform has suggested that for a 2021-style altcoin season to occur, the altcoin market, excluding the top 10 cryptos by market cap, must break above the $470 billion resistance, similar to previous cycles. Once this happens, they expect the altcoin season to begin.