Bitcoin Domiance Confirms Alt Season is Upon Us
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$BTC
I’ve recently been cautious about entering the market due to concerns that Bitcoin’s bearish outlook might drag altcoins down further. My worry was that there could be more downside for alts. However, today’s price action has provided some much-needed clarity—and it’s looking positive.
I shared an idea about Bitcoin dominance bouncing off the 0.618 Fibonacci level back in 2021, which marked the start of altcoin season. Interestingly, we saw a similar setup this November. Bitcoin dominance reached 59.96%, rejected the 0.618 Fib level, and started declining—a promising signal for the start of another alt season. Altcoins initially rallied as dominance fell to 58.03%, but then dominance bounced back up, causing alts to pull back.
What caught my attention, though, was how dominance behaved more recently. On December 22, dominance attempted to climb but topped out at 59.27%—lower than the November high of 59.96%—before posting a notable drop today and setting a lower low today. This is a very positive development for altcoins.
There’s still a lingering concern about Bitcoin’s bearish potential. I’m worried that BTC could revisit its previous all-time high, experiencing a 31% correction down to $73,000. This aligns with historical data from 2021, when Bitcoin saw a 31% drop after dominance hit the 0.618 Fib level. This scenario remains on the table.
However, what I hadn’t fully considered until now is how the altcoin market behaved during Bitcoin’s correction in January 2021. When BTC dropped 31%, the altcoin market surged as illustrated above. This indicates a decoupling effect, where money flows out of BTC and into alts, fueling an altcoin rally even as Bitcoin corrects.
We saw a similar dynamic today. When BTC dropped to $92,000, it had little to no impact on the altcoin market. This decoupling reinforces the idea that altcoins can thrive even during Bitcoin’s downturns.
With these patterns playing out, I’m now confident that we are on the verge of—or already entering—altcoin season. 🚀
#BTC☀ #btc70k #BinanceAlphaAlert #MicroStrategyInNasdaq100 #Write2Earn
