Bitcoin dominance ready to break multi-year support

In the analyst’s eyes, Bitcoin dominance signals another cycle for the cryptocurrency market after remaining dominant for several months.

According to TradingView data, Bitcoin dominance in the cryptocurrency market, which measures the market capitalization of Bitcoin influence, has fallen to 56 percent last month, or down from 60 percent.

Analysts also predicted that Bitcoin would break below its long-standing support trend line, which refers to key technical levels that indicate Bitcoin dominance has fallen below a certain threshold.

“Bitcoin dominance looks so poised to break its multi-year support trend line,” the analyst says in a Dec. 2 X post.

Ethereum dominance also drops to 12.9% of its dominance level following the contraction in Bitcoin. At the same time, the other’s crypto dominance increased from 28.1% to 31.5% last month.

An analyst says the biggest decline in crypto dominance has significantly increased market sentiment, indicating that Altcoin season, also known as Altseason, is here. It is indicated by dominations that break the 2-year support.

An altseason is a market condition in which Altcoins rise higher than Bitcoin as a prominent cryptocurrency in the world, as evidenced by the decline in Bitcoin’s dominance.

Bitcoin dominance and subsequent price action

Bitcoin is also facing a massive trading day with $36.5 billion in volume, or a 15.33% increase in one day.

Price action also bounced back to the $100,000 price target; At the time of this writing, the Bitcoin price has risen to $97,320 or 0.95% in one day of trading.

1-Day BTC price chart, 16 September – 02 December 2024 | Source: crypto.news