Bitcoin dominance trends suggest an altseason could emerge by 2024/2025, driven by a potential bearish MACD crossover.
Historical data reveals that altcoin rallies often follow Bitcoin dominance declines, with key signals indicating a similar trend ahead.
Analysts emphasize monitoring Bitcoin dominance and MACD shifts closely, as these indicators have consistently predicted altseason cycles.
The cryptocurrency market may soon experience a significant altseason, as Bitcoin dominance trends reveal a potential momentum shift. Historical data suggests that such events follow specific patterns, with crucial indicators pointing to major altcoin rallies. Analysts are closely monitoring Bitcoin’s market cap dominance and MACD signals, which have previously triggered notable altcoin surges.
Historical Patterns Indicate Cyclic Altseason Trends
Bitcoin's dominance decreases before any significant altcoin rallies. Last year, it dropped from 70% to less than 40%.lThis led to explosive growth in altcoins. In 2020 there was a similar growth whereby Bitcoin's share declined from 70% to 60% and brought about an altcoin rally. By 2021, it had further fallen, nearing 40%, which set off the biggest altcoin boom to date.
Source: 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖
The current domination of Bitcoin is the result of an increasing trend that began in 2021 and reached 59% in 2024. However, analysts predict a reversal similar to previous altseasons. The MACD indicator, a key momentum tool, supports this projection. Historically, bearish MACD crossovers have coincided with Bitcoin dominance declines and altcoin surges.
Key Signals Suggest 2024/2025 Altseason
Besides the dominance trend, the MACD indicator hints at a potential bearish crossover. Past instances in 2017, 2020, and 2021 all preceded significant altseason events. The chart’s histogram reveals decreasing positive momentum, mirroring conditions before past altcoin rallies. Additionally, resistance points, marked by hammers at dominance peaks, suggest Bitcoin’s dominance may soon reverse.
Moreover, the data aligns with cyclic market behavior, reflecting a consistent relationship between Bitcoin dominance and altcoin performance. Analysts emphasize the importance of two critical signals for confirmation: a bearish MACD crossover and a dominance decline below key levels. Both signals are projected to occur by 2024/2025, potentially triggering another major altseason.
Consequently, traders should closely monitor Bitcoin dominance trends and MACD movements. Altcoins could see significant activity if historical patterns repeat, offering strategic opportunities. However, market participants should remain cautious and adapt strategies as conditions evolve.
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