Gambardello analysis predicts the start of an altcoin season or altseason accompanied by a significant decline in BTC dominance.
He presented a graphical analysis of the major coins' dominance trends from 2017 to present, highlighting the inverse relationship between BTC dominance and the altcoin market, especially during periods of high volatility.
The analyst presentation detailed how BTC dominance declined during the altcoin boom of the 2017 and 2021 bull runs. The chart reveals a recurring pattern where Bitcoin dominance shows a cyclical trend, rallying before the next decline.
Additionally, Gambardello displays two moving average (MA) indicators whose crossover points have historically signaled a decline in that dominance.
The Importance of Monitoring Bitcoin Dominance $BTC
Gambardello's predictions are in line with a broader understanding of crypto market cycles. Bitcoin dominance tends to increase during market corrections and consolidations, where investors seek the relative safety of the largest cryptocurrency.
Conversely, during bull runs, altcoins often outperform Bitcoin, leading to a decline in dominance as investors seek higher returns.
Bitcoin's upcoming decline in dominance could signal a profitable period for altcoin investors. If historical patterns hold, altcoins may see significant upside as Bitcoin's dominance weakens.
Investors should prepare for a volatile but potentially profitable market phase, characterized by sharp moves in both Bitcoin and altcoins.
