In the last month, Bitcoin's price has experienced a significant surge, with its price increasing by 30% and reaching a new yearly high of $35,000, which is 10% above its previous peak for the year. Interestingly, while Bitcoin has been performing well, the broader cryptocurrency market has not kept pace.
The Altcoin market cap, which represents the total cryptocurrency market cap excluding Bitcoin, has been trading within a descending triangle pattern. This pattern is characterized by lower highs and equal lows, typically indicating a bearish trend. It suggests that sellers are gradually becoming more dominant in the market.
A breakout from this pattern is generally seen as a bullish sign, with the target being the level of the first peak. In this case, if there's a breakout, the Altcoin market cap could potentially see another 15% increase, matching the yearly highs in April.
However, the contrasting trends of Bitcoin reaching new yearly highs while the Altcoin market cap forms lower highs suggest that Bitcoin is gaining market share from the rest of the cryptocurrency market. This phenomenon is often referred to as 'Bitcoin Season.' Bitcoin's market share is currently at 54%, the highest it has been in over two years.