Cryptocurrency analyst Master Kenobi has provided extensive analysis, discussing Bitcoin price dominance and the altcoin season. In his analysis, Master Kenobi also reveals what this sudden volatility means for the market.
Where is Bitcoin price dominance heading?
In a post on X, Master Kenobi states that Bitcoin price dominance is said to have started declining yesterday. However, the decline began 20 days earlier than expected. This cryptocurrency analyst adds that after recording three consecutive red weeks, Bitcoin's dominance has entered a volatile phase that may last for a while.
The accompanying chart from the analyst shows that Bitcoin price dominance has experienced this volatile phase for 136 days. If history repeats itself, this volatility will not end until April 6 of next year. Master Kenobi believes the market is currently in the first phase and is likely the most crucial phase 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 can be understood as the beginning of the altcoin season. Master Kenobi claims that even if the bullish market extends after April 6, this phase could be the most effective period for most altcoins.
Master Kenobi notes that the bottom of Bitcoin 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 occur this time. Meanwhile, the analyst points out that the bottom of dominance may happen in early March instead of April 6.
From the Bitcoin Halving perspective
Master Kenobi also uses the Bitcoin halving date as a reference point to demonstrate that Bitcoin price dominance can move in conjunction with these timelines. He notes that in the previous cycle, there was a short 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 notes that the timeline for the bottom of Bitcoin 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 pinpoint the exact date the market will peak at this time.
However, over time, he believes that he will likely be able to identify more accurately when the first phase of the bullish market will end.
At the time of writing, the price of Bitcoin is trading at $100,300, down in the past 24 hours, while its dominance level is 55.13%, according to data from CoinMarketCap.
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