Bitcoin dominance is at a critical level following a four-month decline
Alts could enjoy an epic run or Bitcoin could start to reclaim its prowess
51.74% is the key level to watch for
An epic alt season, the likes of which haven’t been seen for over three years, could be about to happen as Bitcoin dominance is on the verge of breaching a critical level following the weekend’s crash. Bitcoin dominance is at a critical level where a bounce could precipitate an alt-sucking Bitcoin run, but if the critical level is breached then the alt season that follows will be like nothing we have ever seen in the space.
Bitcoin Crash Prompts Alt Season Hopes
Bitcoin’s $10,000 crash over the weekend, caused by a combination of baseless FUD and a $10 billion liquidation cascade, has been followed by a healthy recovery for alts and Bitcoin, but more notably it has resulted in a further correction in Bitcoin dominance:
The importance of this is illustrated when the Bitcoin dominance level is viewed on a higher timeframe:
As we can clearly see, and as we have been saying for some time, the 52–53% level is the final defense Bitcoin has against alts before a 2018-esque collapse. Back in January 2018, following Bitcoin’s run to a then-record of $20,000, alts enjoyed a stunning month which saw some go 100x in a few days. If Bitcoin dominance were to fall below 51.75% and fail the inevitable retest we could well be in line for something of the same, making millionaires overnight.
Beware the Bitcoin Bounce
This is such a critical level that it would be equally possible for Bitcoin to start a resurgence following its flush over the weekend. Let’s not forget that it has been in a downtrend against alts since January, and this final line of defense could prove to be the springboard it needs to find its feet and start another run to all-time highs.
All eyes will be on the Bitcoin dominance chart this week then as the crypto world waits to see if the alt season to end alt seasons is forthcoming.