The token's prominence reached 58.53% in December, marking the start of a possible shift toward altcoin growth.
Historical patterns suggest a drop in dominance often triggers gains in altcoin markets.
TOTAL3 metrics show strong alignment with Bitcoin trends, pointing to a bullish phase for altcoins soon.
Bitcoin influence (BTC.D) has dropped to 58.53% in December 2024, and this marks a moment for the cryptocurrency market. Analyst Rose has identified this shift as a potential trigger for a year-long rally in altcoins, as previous study shows similar trends have repeatedly led to market-wide altcoin growth.
Source: Rose Premium
Historical Market Trends Suggest an Altcoin Rally
Bitcoin dominance has consistently declined after reaching cyclical highs, which often signals a period of strong performance for altcoins.
In December 2018, BTC.D peaked at 57.40%, leading to a sharp decline that set the stage for altcoins to rise. Similarly, in December 2020, BTC.D hit 73.63% before entering a downward trend, allowing altcoins to perform strongly.
Now, BTC.D has topped out again at 58.53% in December 2024, following a tradition of lower highs with each market cycle. Rose Premium points out that this latest drop aligns perfectly with previous trends, suggesting a potential year-long bullish phase for altcoins.
Fibonacci Levels Provide Clear Signals
Historically, BTC.D has retraced to the 0.786 Fibonacci level at 67.08% before facing rejection, which often signals a downward trend. Once Bitcoin dominance begins to fall, altcoins typically enter a period of significant growth, benefiting from the capital shifting out of Bitcoin.
During this cycle, its dominance failed to break past the 0.618 Fibonacci level at 61.41% and now appears to be declining. Analysts predict it could drop further to 38.10%, a level that has historically preceded strong altcoin market performance.
December Peaks Play a Critical Role
In December 2018, Bitcoin dominance reached 57.40% before entering a prolonged decline, opening the door for altcoins to dominate the market. Similarly, December 2020 saw Bitcoin market share reach its highest point at 73.63% before following the same pattern and creating favorable conditions for altcoins.
In December 2024, Bitcoin dominance peaked at 58.53%, continuing the trend of lower highs in each cycle. Rose Prenmium emphasizes that this consistency is not coincidental but a clear sign of the market’s cyclical nature.
TOTAL3 and the Altcoin Market Outlook
When it peaks and begins to decline, TOTAL3 typically enters a bullish phase, which leads to price discovery and growth. Historical data confirms that TOTAL3 often achieves new all-time highs during periods when Bitcoin dominance is falling, offering further evidence of a strong altcoin season ahead.
Rose Premium highlights that TOTAL3’s behavior is once again aligning with Bitcoin dominance, suggesting that the market is preparing for a major shift.
Are Investors Ready for the Altcoin Opportunity?
With Bitcoin dominance dropping from its December peak and TOTAL3 entering a bullish phase, the stage is set for altcoins to perform strongly. Rose Pren’s analysis of market trends, Fibonacci levels, and historical data makes it clear that this is a pivotal moment for cryptocurrency investors.
Understanding these dynamics and acting decisively could make a difference in capturing the potential gains during this period. Investors should continue to monitor these trends closely as the altcoin market enters a critical phase.