Bitcoin News Today: Altcoin Season Begins as Bitcoin Dominance Drops to 61.5%

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The crypto market has experienced significant shifts, with the market capitalization reaching a record high of $4 trillion in July. This surge was accompanied by a drop in Bitcoin Dominance to 61.5%, the lowest since April, indicating the start of the altcoin season. Analysts have identified several key indicators that investors should monitor to navigate this period effectively.

One of the primary signals is the Altcoin Season Index, which is currently at 49. When this index reaches 70 to 100 points, it serves as a warning for investors to consider taking profits. This index is widely used to identify entry points and exit signals in the altcoin market. Additionally, technical analysis of the altcoin market cap (TOTAL3) suggests that it is forming a cup-and-handle pattern, which could indicate a target of $2 trillion. This level may be a crucial point for altcoin holders to consider exiting their positions.

Another important factor is the capital flow cycle, which is divided into four phases. Currently, the market is in the second phase, where Ethereum is outperforming Bitcoin. This phase is followed by a rally in large-cap altcoins and then small-cap altcoins and meme coins, which often signals the final stage of the altcoin season. Investors are advised to monitor this progression closely to determine the best time to exit the market.

Bitcoin Dominance (BTC.D) is also a critical indicator. In July, BTC.D decreased from 65.5% to 61%, marking the largest monthly drop since November 2024. Analysts believe that the altcoin season may continue until BTC.D falls to 48% to 50%. This trendline from previous cycles suggests that the current altcoin season could be sustained for some time.

Historical data shows that the late 2024 altcoin season ended in sharp declines, with many altcoins dropping by 50% to 90%. This underscores the importance of identifying the right time to take profits. Investors who fail to act quickly may see their portfolios sink deeper into losses. Therefore, it is crucial to stay vigilant and use the identified signals to make informed decisions.

In summary, the current altcoin season presents both opportunities and risks. Investors should closely monitor the Altcoin Season Index, the technical analysis of the altcoin market cap, the capital flow cycle, and Bitcoin Dominance to determine the best time to exit the market. By staying informed and acting decisively, investors can navigate this volatile period and potentially secure their profits.