As $BTC dominance drops below 55%, is altcoin season here? - AMBCrypto Analytics

At press time, BTC changed hands at $58.257. This represented a 1.37% increase in the last seven days. However, an indicator to check if Bitcoin is beginning to lose it superiority is the TOTAL2.

Between the 5th of July and the time of writing, the TOTAL2 has risen by 8.01%, indicating that the prices of the average altcoins have been better than Bitcoin dominance.

The last time, the indicator took such steps, the market cap jumped by 66.61% between February and March as the market cap also crossed $1.20 trillion. At press time, the market cap was $953.68 billion.

If this continues to increase, it can hit $1 trillion, possibly driving a closer move to the much-anticipated altcoin season. If this happens, the BTC’s correction would continue.

One factor that can drive an increase in the dominance is Ethereum [ETH]. Historically, when ETH’s price performance better than BTC, it gives strength to other altcoins.

In turn, it reduces Bitcoin dominance. One catalyst market participants are looking forward to is the launch of the spot Ethereum ETFs.

However, it is also important to look at the ETH/BTC chart to see if the altcoin would take over Bitcoin dominance in the coming weeks.

When the ETH/BTC increases, it means that Ethereum is outperforming Bitcoin. But a decrease suggests otherwise. Previously, the ETH/BTC ratio was 0.051.

But as of this writing, that has increased to 0.053, meaning 1 ETH equaled 0.053 BTC. In addition, the Relative Strength Index (RSI) revealed that ETH was gathering a good level of momentum.

If sustained, this could drive the ratio to 0.056, and possible send Bitcoin dominance down.