Altcoins
Like Bitcoin [BTC] Dominance Falls Below 55%, Is Altcoin Season Here?
- Altcoin market cap has increased while Bitcoin market cap has fallen.
- The launch of Ethereum spot ETFs could further reduce Bitcoin dominance.
AMBCrypto’s analysis revealed that the Bitcoin [BTC] The dominance chart is down. On July 10, the dominance was 55.10%. However, at press time, it had dropped to 54.62%.
Bitcoin dominance is an important indicator of BTC price, as it allows you to compare the cryptocurrency’s market capitalization to that of other cryptocurrencies.
Can BTC Dominance Continue?
If Bitcoin dominance increases, it means that the coin is outperforming the average altcoin. On the other hand, when it decreases, it indicates that BTC is losing momentum and altcoins are performing better.
Since the beginning of the year, cryptocurrencies have performed better. But in the last month and in recent times, the opposite has happened. If this trend continues, Bitcoin could fall further despite the correction it has undergone.
Source: TradingView
At press time, BTC was changing hands at $58,257. This represented a 1.37% increase over the past seven days. However, one indicator to check if Bitcoin is starting to lose its superiority is the TOTAL2.
TOTAL2 is also known as the total market capitalization of the cryptocurrency market, excluding BTC. If it increases, it means that altcoins are performing better than Bitcoin.
But when that price drops, it means BTC is leading the market resurgence.
Between July 5 and the time of writing, TOTAL2 has increased by 8.01%, indicating that average altcoin prices have outperformed Bitcoin dominance.
Altcoins are ready to fight the king
The last time the indicator took such action, the market capitalization jumped 66.61% between February and March, also exceeding $1.2 trillion. At press time, the market capitalization was $953.68 billion.
If this figure continues to rise, it could reach $1 trillion, which could bring us closer to the much-anticipated altcoin season. If this happens, the BTC Correction would continue.
Source: TradingView
One factor that can lead to increased dominance is Ethereum [ETH]Historically, when ETH price performance is better than BTC, it gives strength to other altcoins.
In turn, this reduces Bitcoin’s dominance. One of the catalysts that market participants are eagerly awaiting is the launch of Ethereum spot ETFs.
However, it is also important to look at the ETH/BTC chart to see if the altcoin would take over Bitcoin in the coming weeks.
When the ETH/BTC ratio increases, it means that Ethereum is outperforming Bitcoin. But a decrease suggests the opposite. Previously, the ETH/BTC ratio was 0.051.
Source: TradingView
Realistic or not, here it is BTC Market Cap in terms of ETH
But at the time of writing, this figure has increased to 0.053, meaning that 1 ETH is equivalent to 0.053 BTC. Additionally, the Relative Strength Index (RSI) revealed that ETH is gaining a good level of momentum.
If this continues, it could push the ratio up to 0.056 and possibly lower Bitcoin dominance.