Bitcoin's market share has fallen below 60%, and the signals of an alt season are starting to emerge?



According to the latest data from TradingView, Bitcoin's market share (BTC.D) has fallen below the critical psychological level of 60%, the lowest level since January this year, reflecting that funds are accelerating towards Ethereum and other altcoins.

This trend has begun to emerge since the end of June, with Bitcoin's market share declining by 10% in just over a month, down to the current 59.14%, sparking widespread discussion in the market about the impending "alt season."

By observing historical patterns, it can be found that during past bull markets, when Bitcoin's market dominance continuously falls below key support levels, it often signifies the official start of the altcoin season. Currently, Bitcoin's market dominance has fallen below the key support level of 60%, also showing initial characteristics of capital rotating towards altcoins.

This change in the flow of funds is corroborated by technical indicators. Currently, the altcoin index from BlockchainCenter has risen to 51, while the alt season index from CoinMarketCap remains at a moderate level of 41 (out of 100), indicating that there is still room for growth to reach the index value of the alt season.

It is worth noting that this round of market activity is highly consistent with historical patterns. In the bull market cycles of 2017 and 2021, when Bitcoin's market share fell below the 50% threshold, there was a significant altcoin rally.

The crypto research institution Bull Theory pointed out that the weekly chart of Bitcoin's dominance has shown signs of fatigue, and once it falls below a key support level, it will trigger an altcoin market rally. The institution predicts that in the next six months, Bitcoin's market cap share may drop to 45%, while high-quality altcoins are expected to rise by 10 to 50 times.

However, market analysts also remind investors that the current price of Bitcoin remains in a relatively stable range, indicating that this round of capital rotation is still within a healthy category and the alt season may not have officially begun.

In summary, as the dust settles from the U.S. midterm elections (expected this November), the cryptocurrency market is likely to welcome a sustained rebound, driving the diversification trend of the digital asset market into a new phase.

#山寨季 # BTC.D
BTC-1.41%
ETH-1.63%
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