Cryptocurrency analyst Master Kenobi provided an in-depth analysis, discussing Bitcoin price dominance and altcoin season. In his analysis, Master Kenobi also revealed what this sudden volatility means for the market.
Where Is Bitcoin Price Dominance Heading?
In a post on X, Master Kenobi claimed that Bitcoin's price dominance allegedly started to decline yesterday. However, the decline started 20 days earlier than expected. The crypto analyst added that. After recording three consecutive red weeks, Bitcoin's dominance has entered a volatile phase that could last for a while.
The accompanying chart from the analyst shows that Bitcoin's price dominance has experienced this volatile period for 136 days. If history repeats itself, this volatility will not end until April 6 of the following year. Master Kenobi believes that the market is currently in the first phase and likely the most crucial stage of the capital rotation from Bitcoin profits.
After the market surpasses this capital rotation phase, Master Kenobi predicts that a significant drop in dominance will follow, which could be understood as the beginning of the altcoin season. Master Kenobi states that even if the bull market extends beyond April 6, this phase will likely be the most effective period for most altcoins.
Master Kenobi notes that the bottom of Bitcoin's price dominance on May 14, 2021, coincided with the first peak of the cryptocurrency market during the 2021 bull run. The analyst expects a similar pattern to unfold this time. Meanwhile, the analyst points out that the bottom of the dominance could occur in early March instead of on April 6.
From the perspective of Bitcoin Halving
Master Kenobi also uses the Bitcoin halving date as a reference point to demonstrate that Bitcoin's price dominance can shift alongside these timelines. He notes that in the previous cycle, there was a brief period (four days) between the one-year anniversary of Bitcoin halving on May 11 and the first major bottom in dominance on May 15.
In line with this, the analyst remarks that the timeline for the bottom of Bitcoin's price dominance (which will also mark the peak of the cryptocurrency market) could extend from after April 20 to April 23, 2025. Master Kenobi warns that it is impossible to accurately determine the peak date of the market at this time.
However, over time, he believes that he will likely be able to more accurately pinpoint the end date of the first phase of the bull market. At the time of writing, the price of Bitcoin is trading at $100,300, down over the past 24 hours, while its dominance is at 55.13%, according to data from CoinMarketCap.
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