Bitcoin Dominance Hits 66% New Cycle High, Altcoin Season Looms

Bitcoin dominance has reached a new cycle high, surpassing 66%. This development has significant implications for the altcoin market and the potential for an altcoin season. Crypto analyst Finsends commented on this trend, noting that while Bitcoin dominance is at an all-time high, a correction is likely to occur soon. According to Finsends, the potential target area for a top in this scenario is around 68.56%.

Finsends' accompanying chart suggests that Bitcoin dominance could reach this projected top by July, followed by a decline. If this decline occurs, the Bitcoin dominance index could drop to as low as 48%, creating favorable conditions for an altcoin season. During this period, altcoins could experience significant gains and outperform Bitcoin in the second half of the year.

Another crypto analyst, Michaël van de Poppe, also weighed in on the rising Bitcoin dominance and its impact on the altcoin market. He observed that the altcoin season indicator has hit its lowest point in two years, with historical lows occurring in June or July. Van de Poppe noted that this pattern suggests a potential altcoin season in the near future, although he did not provide a specific timeline.

Van de Poppe emphasized that for altcoins to take off, they need an upward push from Ethereum, which in turn requires a push from Bitcoin. He believes that once the Bitcoin price bottoms out, Ethereum will likely continue to outperform Bitcoin, leading to a decline in Bitcoin dominance. This scenario could pave the way for altcoins to shine and heavily outperform the market.

However, Van de Poppe advised investors to exercise patience, as the current market conditions do not yet favor altcoins. He believes that the next leg upwards for Ethereum will be the catalyst for an altcoin season, but this has not yet materialized. At the time of writing, the Bitcoin price is trading at around $101,700, reflecting a slight decline in the last 24 hours.