THE altcoin season could be closer than ever, as Bitcoin’s dominance has entered a historically favorable phase for alternative digital assets. Altcoin season has officially entered the 140-day Golden Window, a period marked by significant growth for altcoins. This phase is driven by a shift in Bitcoin’s dominance fueled by a shift in investor interest from the leading cryptocurrency to other assets.
Altcoin season poised for epic surge in Q1 2025
A market expert known as “the crypto ball” has revealed on non-Bitcoin cryptocurrencies skyrocket as Bitcoin dominance crumbles. Earlier in November 2024, the Bitcoin Dominance peaked, indicating that the pioneer cryptocurrency was then commandeering a larger share of the market.
This peak of Bitcoin dominance coincided with its rise to an all-time high, as massive demand and dwindling supply of the cryptocurrency led to a price surge above $104,000.
Despite last month’s high, Crypto Bullet revealed that Bitcoin Dominance was rejected at the 0.618 Fibonacci retracement level. This level, corresponding to a 60% Bitcoin dominanceindicates that a trend reversal could be in play following the rejection.
Crypto Bullet revealed that historically, Bitcoin dominance takes around 20 weeks to bottom after reaching its peak. As of this writing, the market is in the fifth week of this 140-day cycle, with only 15 weeks left to go. Bitcoin dominance will decline further.
Over the next 15 weeks, the analyst expects Bitcoin’s dominance to collapse, forecasting an aggressive decline from its current level of around 58%, as the chart indicates. This decline often signals a shift in demand and investor interest from Bitcoin to altcoins, leading to the start of the expected altcoin season.
Based on the chart, the analyst suggests that by April 7, 2025, marking the end of the 140-day cycle, Bitcoin dominance is expected to increase. reach a bottom almost 40%. If Bitcoin dominance enters this projected collapse phase, Crypto Bullet has predicted that the first quarter (Q1) of 2025 will be “epic.”
Understanding Bitcoin Dominance
Bitcoin dominance represents the percentage of the total cryptocurrency market capitalization attributed to Bitcoin. This key technical indicator is typically used to measure investor sentiment and predict market trends.
When Bitcoin dominance declines, it signals that capital is flowing from Bitcoin to other alternative digital assets, indicating that investors are increasingly willing to take risks and explore altcoins. On the other hand, when this dominance is high, Bitcoin holds a larger share of the market value, as investors generally focus on it more than other cryptocurrencies.
A severe decline in Bitcoin dominance often indicates that altcoin season could be on the horizon. The last significant altcoin season took place during the previous bull run in 2021. At the time, Bitcoin’s dominance had dropped significantly, followed by a sharp decline in its price.
Featured image created with Dall.E, chart from Tradingview.com
