Bitcoin’s 58% Dominance: Is Altcoin Season on the Rise?

• Bitcoin dominance remains under pressure at crucial resistance points. 
• The altcoin season index has soared to its highest reading in half a year.

Bitcoin [BTC] dominance has faced challenges at a significant resistance threshold of 58%, fueling market enthusiasm for a potential altcoin season if its market share continues to decline.

Historically, altcoins have surged when BTC dominance has fallen. 

Since the beginning of 2023, BTC dominance (BTC.D) climbed from 40% to a recent peak of 58%.

However, the 58% mark also serves as a resistance point, which, if not surpassed, could pull BTC dominance downward. Many analysts anticipate that a decline could intensify the altcoin rally. 

Source: X

Altcoin season reaches 6-month peak

One of the key indicators for assessing the vitality of the altcoin market is the ETH/BTC ratio, which reflects ETH’s value in relation to BTC.

Moreover, since ETH is the top altcoin, the ETH/BTC ratio also serves as a barometer for the overall performance of the altcoin market. 

Source: CoinMarketCap

Following the Fed’s pivot on September 18th, ETH has outperformed BTC, indicating a stronger performance for altcoins during a period when BTC dominance decreased by 2.5%. 

Recently, memecoins made a dramatic comeback, spearheaded by Shiba Inu [SHIB].

In the monthly analyses, Sui network [SUI], Bittensor [TAO], and Popcat [POPCAT] led the pack with remarkable double and triple-digit gains for September. 

Source: Blockchain Center

Currently, the Altcoin Season Index indicates a reading of 49, which is near neutral and represents the highest level since March. This highlights last month’s impressive performance of altcoins. 

Despite heightened interest in altcoins, the founder of CryptoQuant mentioned that a large-scale capital shift from BTC to altcoins has not yet commenced. 

“There hasn’t been an asset rotation from #Bitcoin to altcoins yet, but overall buying pressure is increasing. I appreciate the calm before the storm.” 

Source: CryptoQuant

In other words, the altcoin season is gaining traction, presenting opportunities for those who are invested. Thus, dips in BTC could offer excellent chances to acquire more undervalued altcoins with significant growth potential.