Bitcoin dominance back above 54%: altseason coming?

Today, parallel to the rise in the price of BTC, Bitcoin Dominance has also recorded a further positive leap, fueling hopes of encountering a great altseason phase in the near future.

Usually, in fact, altcoins give the best performances in terms of prices when Bitcoin Dominance, starting from a high point, begins to plummet.

As happened in the past in previous bull market cycles, most likely this year we will have the opportunity to speculate with alternative currencies to Bitcoin.

The altseason is just around the corner: below are all the details on how to be prepared.

Bitcoin Dominance Trend: BTC reigns over the cryptocurrency market

As Bitcoin returns above $51,000, bringing the crypto asset’s market capitalization to $1 trillion, the Bitcoin Dominance index also records a green candle, effectively increasing the chances of entering a noteworthy “altseason” phase.

The term altseason refers to a period in the cryptocurrency market where the so-called “alternative coins” (altcoins) show higher price performance compared to BTC.

Usually this phase coincides with the decline of the Bitcoin Dominance index, but it always comes after a previous phase in which the same index has grown a lot.

In fact, the process the capital rotates within the cryptocurrency market during bull market periods is as follows: first, Bitcoin rises, causing BTC.DOM to grow, then Ethereum and other altcoins rise with BTC.DOM dumping heavily.

During the last bullish cycle, in fact, from September to December 2020, the same index grew significantly, going from 58% to 73%. From January 2021 to May, it then dropped to 41%, causing crazy increases in many altcoins that recorded double-digit multipliers.

Although we are still far from the levels of dominance observed at the end of 2020, we can still affirm that we are at least close to the reversal moment in which we can officially celebrate the arrival of altseason.

Cyclically, Bitcoin dominance continues to decline, making room for new projects that animate the cryptographic landscape with increasingly innovative products.

This year it will be difficult for the index to exceed 60-65%, so we can already start preparing for this event that historically gives big profits to the most attentive traders.

Upon exceeding the 55% threshold, we can expect another pump in the metric, with a probable target in the 56% range and subsequently 58%.

Be careful not to be deceived by the current negative contractions in the coming days, as they may only turn out to be temporary dips and not the actual beginning of the altseason.

As for timing, it is possible to hypothesize that the true altseason will begin after BTC surpasses its previous all-time high at 69,000 USD.

Altcoins from here to the near future could still achieve positive percentage returns, but it is likely that the majority will underperform digital gold until the moment the speculators’ party begins.

Altseason incoming: several altcoins are ready to explode

With Bitcoin Dominance preparing for one of its last bullish movements before the expected big dump, we can now prepare ourselves by identifying the cryptocurrencies that will perform best during the next altseason phase.

First of all, it is important to clarify that if there ever will be a true altseason, certainly ETH will be one of the coins that will benefit the most from this situation, being the altcoin par excellence in the cryptocurrency market.

This coin in its chart against Bitcoin may have already found the bottom at 0.05 sat after a downtrend that had been continuing since September 2022.

The forecasts for ETH are that during the bearish phase of Bitcoin Dominance, it will return to a value of 0.08 sat, with a hypothetical dollar equivalent of around $8,000.

To be prepared, it wouldn’t be wrong to consider starting to convert a small portion of your BTC into ETH from now on.

Other cryptocurrencies that could explode during altseason are all those that have debuted in the market in the last 12-16 months and have never experienced a real bull run.

Among these are OP, ARB, TIA, PYTH, DYM, MANTA, ALT, AI, XAI, SUI, SEI, and PENDLE.

They are all high potential coins that could deliver frightening performances, while also carrying obvious risks of encountering dangerous downtrends if things were to go wrong.

Be careful to position yourself too early on this coin, from here until the next few months they could experience significant drops, and then recover during a bullish market phase.

Some of these, such as TIA, have already grown significantly in recent weeks, so it is better to wait for a retracement rather than jumping in at historical highs.

Finally, another category of altcoins preferred to undergo a bullish price action in the coming months concerns high-cap historical coins which consistently offer good returns during each bull run.

We are obviously talking about cryptocurrencies like XRP, XLM, ADA, LTC, VET, DOGE, and TRX, which have a good track record and have already shown that they can deliver when it really matters.

Be careful not to fall in love with these coins as they outperform BTC only in certain phases of the year and in the long run they constantly lose value compared to the major crypto asset.

Other altcoins to keep an eye on for strong pumps when Bitcoin Dominance drops include LINK, SOL, AVAX, MATIC, ICP, MNT, BGB, and BNB.

Even in these cases, advancing too early could be the wrong choice: it is much better to make a strategic plan on how to speculate in altseason, being ready to execute the switch only when the right time comes.

We remind you that these are risky operations, and those who do not want to deal with higher volatility than what already characterizes the price movements of Bitcoin, can safely ignore these speculative opportunities and hold their satoshis for the entire duration of the bull market.

Always evaluate your risk exposure carefully and always do your research before diving into a new trend.