Bitcoin's dominance is declining
In the past month, Bitcoin's dominance (BTC Dominance Index, abbreviated as BTC.D) has dropped from 60% to 56%. This indicator represents the proportion of Bitcoin's market capitalization to the total cryptocurrency market capitalization. When BTC.D rises, Bitcoin has more dominance; when BTC.D declines, funds may be flowing into other cryptocurrencies.
Image source: TradingView BTC.D chart
This number may seem insignificant, but it has critical market implications. Historically, BTC.D tends to turn downward after the peak of a bull market. Whenever this happens, the market welcomes a wave of significant capital redistribution—funds leave Bitcoin and flood into the altcoin market.
Analysts point out that Bitcoin's dominance has fallen below a long-standing support trendline. In the past month, the dominance of the altcoin market has surged from 28.1% to 31.5%. If BTC.D continues to decline, Bitcoin's market influence will further dilute, and altcoins may see more opportunities.
Ethereum is ready to surge to 'this level'
One of the main recipients of funds flowing from the decline in BTC.D is undoubtedly the king of altcoins - Ethereum ($ETH). According to CoinGecko data, Ethereum ($ETH) has risen 10% in the past 7 days, currently priced at $3,734.
Image source: CoinGecko BTC price chart
Analyst DoctorProfit pointed out that Ethereum has formed a typical bullish pattern on the monthly chart - an ascending triangle. This technical structure is formed by the support line below the channel and the horizontal resistance level, accumulating upward momentum while price fluctuations are compressed.
Image source: XETH price chart
DoctorProfit pointed out that if Ethereum can break through the key resistance point of $4,000, it will become an important price catalyst, with a mid-term target potentially pointing directly to $8,000.
However, analysts also remind that $3,400 is currently an important support level that can provide a buffer during pullbacks. If this support level is breached, it may trigger a short-term pullback consolidation. However, the overall market sentiment towards Ethereum remains strong.
[Disclaimer] The market has risks; investment should be cautious. Analyst opinions are for reference only, and users should refer to more diverse indicators to judge whether to invest, and consider whether any opinions, views, or conclusions in this article align with their specific situation. Invest at your own risk.
'Bitcoin's market share is declining! Analyst: The wild altcoin season is coming, and Ethereum is ready to surge to 'this level'' This article was first published in 'Crypto City'
