BTCD Sees Sharp Drop — Is Altseason Finally Here?

In recent weeks, the BTCD, which measures Bitcoin's market share in the entire cryptocurrency market, has recorded a sharp decline of 6.30%.

According to technical analysts, this could be an early signal of an upcoming "Altseason", expected to occur within 3-6 months.

Bitcoin's Dominance Gives Way, Is Altcoin Season Coming?

According to observations from several famous market analysts, BTCD is experiencing significant structural changes.

Notably, Bitcoin Dominance has formed a "bearish crossover" on the 3-week timeframe. This is often considered an important technical indicator signaling a potential trend reversal.

Additionally, BTC.D has officially broken the three-year upward trend. This is considered one of the strongest signals indicating Bitcoin's market strength is weakening.

"Bitcoin Dominance has lost its 3-year upward trend. This is the biggest sign of an Altseason and upcoming parabolic price increase," Ash Crypto stated.

Merlijn, an experienced trader, points out that the current market structure is occurring similarly to the "scenario" in 2021, when a major altcoin season occurred. According to him, Bitcoin Dominance has entered "Phase 4" – a clear breakout phase – paving the way for capital flow into altcoins.

When this transition fully occurs, a strong capital circulation cycle from Bitcoin to other altcoins is likely to emerge.

Another important indicator emphasized is the ETH/BTC pair. In the context of BTC.D declining, many experts believe Ethereum will lead the next altcoin market growth wave.

In recent weeks, ETH has strengthened compared to BTC, indicating that capital is gradually moving away from Bitcoin. Investors are likely seeking higher profits from lower market cap assets.

Moreover, crypto investor Ted affirms that in the next 3-6 months, Ethereum and many altcoins may experience significant growth. Although there might be short-term corrections to "eliminate" weak investors, the structural trend suggests that the altcoin market is preparing for a cyclical price increase.

Short-term Barriers for Altcoin Season

However, not everyone agrees that Altseason will start immediately. Some analysts suggest that BTC.D is still oscillating in the 60-61% demand zone, which could act as a strong support helping Bitcoin maintain market share in the short term.

Analyst Crypto Candy emphasizes that unless BTC.D convincingly breaks below this zone, altcoins may continue to struggle and grow slowly.

"As long as the 60-61% zone remains firm, we may not see real momentum in altcoins. Additionally, during this time, we might see slow movement and corrections in altcoins," the analyst stated.

Therefore, investors are advised to be patient and closely monitor price actions and capital flows in the short term. Altcoin growth may not occur immediately; instead, it might gradually transition as the market slowly shifts from Bitcoin's dominance to a more diverse asset circulation cycle.