The Dominance of Bitcoin Could Kill the Dream of Altseason, Analyst Warns

According to an analyst on X, the influence of Bitcoin on the market seems too strong, making it difficult for altcoins to break through in the near future. The price of Bitcoin rose to about 104,000 dollars after increasing by 0.4%. The price fell to 103,000 dollars in the short-term, but buyers quickly stepped in. The push has brought the price back to the $105,000 mark. At the same time, the U.S. Federal Reserve kept interest rates unchanged, causing traders to be wary of any spillover effects. Explanation About Support Band in Bull Market Based on reports, the Bull Market Support Band lies between two key moving averages. One is the 20-week simple moving average. The other is the 21-week exponential moving average. Together, they form an area that Bitcoin Dominance has used as a springboard throughout the year. When dominance tests that area, it often bounces higher instead of falling further down.

Check Historical Support The dominance of Bitcoin has fallen from about 56% in June 2024 to 54% in July of that year but has found support. It also fell from 58% to 56% from the end of December 2024 to January 2025. Each time, the support range remains strong. More recently, the dominance has fallen to 61% on May 14 after peaking at 65% on May 7, only to recover to 64% in a few days.

Warning and Scenario from the Analyst Other experts see a different picture as Bitcoinsensus warns that dominance could "fall into the abyss" before any altcoin season begins. That perspective suggests a sudden drop, which could create opportunities for altcoins. An analyst points out that a double top pattern may occur in dominance. If Bitcoin cannot break through the resistance level, money may flow into altcoins. But if dominance rises higher, some believe that Bitcoin could head towards a new record. Limit of Statistical Data Dominance only measures Bitcoin's market share in the total cryptocurrency market capitalization. It can decline if stablecoins flood in or if new tokens are launched, even if altcoins do not rise in price. And an increase in dominance can mean that altcoins are being sold off. Traders should be aware that moving average support lines can fail in volatile markets. A pattern that has been in place for months can be broken when the climate changes. Finally, the Bull Market Support Band provides a clear trendline. It shows that Bitcoin remains the preferred choice of many investors. However, relying on a technical tool may overlook larger moves driven by real-world news or new blockchain data.