Bitcoin Dominance Echoes 2021 Crash – Is Altcoin Season Imminent?

Altcoins have been in a bearish trend led by Bitcoin for long, but that season may soon be over. Analysts say Bitcoin dominance is crashing, which is an early indication of a coming altcoin season that you need to pay attention to.

Data shared by a crypto trader shows that Bitcoin dominance (the share of the market that Bitcoin accounts for) has crashed to a level of particular interest, suggesting that an altcoin season may be around the corner. 

Is 2021 Altcoin Season About to Repeat Itself?

The crypto market is usually dominated by Bitcoin in terms of its share of the market cap. This only changes when altcoins begin to rally in what is termed an altcoin season. Bitcoin’s dominance needs to reduce significantly for this to happen, and according to the trader, this may be the pattern that suggests such a time is coming.

He added that Bitcoin dominance has lost its support while TOTAL3 – a tracking index that tracks the total market cap of all crypto assets except Bitcoin – is still enjoying support. This is just like the 2021 altcoin season where several altcoins saw a massive rally. According to the analyst, altcoins are next in line in the crypto bull market.

If the trader is right, this will be a much needed relief for altcoin investors who have long expected an altcoin season that just doesn’t seem to be coming. As Bitcoin has to complete its rally before giving way to altcoins, many investors had already given up because the number one asset doesn’t seem to be rallying anymore.

If the dominance is breaking down, it means the altcoin season could be coming any time soon, and altcoin investors can heave a sigh of relief once again. Meanwhile, Bitcoin is still influencing the prices of altcoins as they also remain range-bound, just like the number one crypto asset.

Is Bitcoin Done Yet?

In a typical altcoin season, Bitcoin has to outperform and complete its own season before altcoin takes over, but is it done yet? After hitting an all-time high of $126,000, the coin crashed to a low of $83,000 and has since remained in a restricted range that is currently “pretty much noise.”

If an altcoin season is coming, that suggests that $126,00 is the highest price Bitcoin can reach in this cycle, which may be disappointing for some people. Analysts had projected a price of up to $150,000 for the asset in 2025.

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