Bitcoin Dominance & Indicators Favor Altcoins

As we are now almost halfway through the year, the crypto market could be heading toward the pivotal phase of the bullish cycle: “The Altseason”. Despite the short-term volatility, key indicators justify that the market structure remains bullish. A shift in Bitcoin dominance and RSI behaviour could signal the onset of a strong altcoin rally. In this analysis, we explore market movements, key technical levels, and what you, as an investor/trader, could expect next!

BTC Dominance at a Crossroads: Bitcoin vs Altcoins?

The analysis by Front Runners mentions that BTC.D is currently testing the 64% resistance zone. The post highlights that a breakout from here could extend Bitcoin’s strength at the cost of altcoin performance. Conversely, a rejection would possibly mark a monetary shift into altcoins, giving a boost to their momentum and setting the stage for an aggressive rally.

If BTC dominance fails to break above the 64% barrier and the total market cap forms a base near support, altcoins are expected to outperform. That being said, this shift has historically led to the start of an altseason.

$3.2 Trillion Test: Pullback or Trend Reversal?

The total market cap of the crypto industry has fallen to $3.32T, but what keeps the hope intact is that it has not broken the key support at $3.24T. Mayo Insights highlights that this indicates a temporary dip, and not a collapse. The RSI has reset to below 60 from overbought levels near 80, which is typical in bullish consolidations rather than bearish reversals.

What About Indicators?

The proponent highlights that RSI holding above 40 in a bull market signals that fear isn’t dominating. Moreover, the support levels between $3.0T and $3.11T align with the 50- and 100-day EMAs, offering an ideal accumulation area. A bounce from here would affirm the ongoing bullish momentum and likely bring altcoins into the spotlight.

To know what Ethereum could do next, read our Ethereum (ETH) Price Prediction 2025, 2026-2030!

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