Bitcoin News Today: Altcoin Season Begins as Bitcoin Dominance Drops 0.62%

Bitcoin is currently experiencing a period of stagnation, failing to surpass a critical resistance level, while the broader crypto market, particularly altcoins such as Ethereum and XRP, is exhibiting strong bullish trends. This divergence can be attributed to a decline in Bitcoin dominance, which measures the proportion of the total crypto market value held in Bitcoin. A drop in this metric indicates that investors are shifting their funds from Bitcoin to altcoins, signaling the onset of an "altcoin season" where assets like Ethereum, Solana, and XRP often outperform Bitcoin.

Ethereum, for instance, has recently surged by nearly 3.75%, coinciding with a 0.62% decrease in Bitcoin’s market share. The total value of the altcoin market, though still below its all-time high, suggests ample room for further growth. Additionally, the total crypto market cap, excluding Bitcoin and Ethereum, is displaying a bullish pattern reminiscent of the 2017 market conditions, which preceded a significant price surge in altcoins.

Historically, Bitcoin has been the first to rally in each market cycle, followed by Ethereum and then larger altcoins, with smaller and newer altcoins trailing behind. This pattern has been consistent, and the current market appears to be following a similar trajectory. Despite Bitcoin's overall bullish long-term trend, indicated by a cup-and-handle pattern suggesting a move toward $153,000, it is currently facing short-term resistance between $120,000 and $123,000. Until Bitcoin breaks above this zone, it may continue to trade sideways.

Short-term indicators, such as the Relative Strength Index (RSI), show that Bitcoin has cooled down from its overbought levels, indicating potential for a fresh upward move. However, before this occurs, Bitcoin might experience a slight dip to around $116,700, where significant market liquidity is present, before potentially resuming its upward trajectory.