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The strength of the recent crypto market over the past four days has seen the return of bullish momentum in many cryptocurrencies, with the price of Bitcoin leading the way. Interestingly, this has led to the display of future gains in many altcoins, and technology suggests that the altcoin season may continue in the region.
Crypto analyst Kevin (@Kev_Capital_TA) recently he drew attention important development of the daily cross of death Bitcoin dominance. This unusual occurrence may mark a change in cryptocurrency investment in the coming months and its implications Bitcoin and the altcoin market.
Bitcoin Dominance Chart Form Daily Death Cross
According to a technical analysis of the Bitcoin dominance chart, the leading cryptocurrency is about to form a death cross in the candlestick timeframe. A death cross is a technical indicator where the short-term moving average falls below the long-term moving average, usually indicating bearish momentum. On the other hand, Bitcoin’s dominance chart tracks the percentage of the total cryptocurrency market represented by Bitcoin, and a decline often indicates growing strength in altcoins.
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In this case, the daily death of the cross on the Bitcoin dominance chart formed the highest for the first time in four years, according to Kevin’s analysis. It is interesting that the technical analysis shows that the dominance of Bitcoin has faced a large gold dump two different times in the last three months, an event that gives more weight to the change in market forces if the death cross will finally be seen.
What Does This Mean For Cryptocurrencies?
Kevin’s analysis highlights a historical example where a daily death cross at the top preceded the start of the alt season. Four years ago, in 2021, a similar event occurred on the Bitcoin dominance chart, preceding a shift in market momentum away from Bitcoin to altcoins. At that time, Bitcoin’s dominance was around 63% of the entire market cap. However, the subsequent altcoin season saw Bitcoin’s dominance fall below 40% in April 2021.
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The current setup suggests that a comparable situation is possible. If the death cross leads to a further decline in Bitcoin dominance, it could pave the way for an altcoin market rally.
Nevertheless, Bitcoin continues to dominate revenue. At the time of writing, Bitcoin was trading at $99,750, with a market dominance of 55.8%. However, recently price performance of cryptocurrencies such as XRPDogecoin, and Solana appear to be threatening this dominance. On the other hand, Ethereum, the king of altcoins, remains to be seen similar rally in this cycle.
Adding to this opinion, crypto analyst TechDev he pointed at the beginning of the altseason. His analysis focuses on the six-month candle period of the Bitcoin dominance chart, where he points out that the current candle is the one where altcoins will make their move. According to TechDev, the current candle coincides with the historical periods when altcoins converge, citing similarities in 2017 and 2021. He explained that during these cycles, Bitcoin’s dominance dropped to a new six-month candle after surpassing the previous cycle’s all-time high.
The featured image was created with Dall.E, a chart from Tradingview.com