This Rising Bitcoin Indicator Implies Altcoin Season Is Here.

After an extended battle between bullish and bearish sentiments, Bitcoin Dominance, a measure of Bitcoin’s share of the overall cryptocurrency market, has climbed to 64%.

Crypto analyst Rekt Capital notes that this rise in dominance signifies more than a mere technical aspect; it may herald a broader trend that allows Bitcoin to capture as much as 71% of the cryptocurrency market.

A Historical Reclamation

Bitcoin Dominance serves as more than just a statistic; it reflects the overall mood of investors. An increase suggests that funds are being shifted into Bitcoin, often at the cost of altcoins, indicating a more cautious stance or a preference for Bitcoin as a safer asset in uncertain times.

According to Rekt Capital, regaining the 64% level as a key support might lead to historical trends where dominance surpassed 70%, a benchmark last reached during the bullish phase of 2021. The analyst remarked, “The path to 71% continues with a successful test of 64%.”

Earlier in March and April, he discussed how Bitcoin’s Dominance faced significant resistance near its previous highs from November 2024 before breaking through in late April. The successful retest of these levels leading into early May marks what he describes as the “final leg” of Bitcoin’s dominance, typically followed by a notable decline.

The analyst commented, “Bitcoin Dominance is currently gearing up for its likely final phase in its Macro Uptrend ahead of a significant downturn.”

Are We on the Brink of Altcoin Season?

This anticipated reversal often leads to a phenomenon known as “altcoin season.” During such times, other digital assets tend to outperform Bitcoin, attracting substantial investor attention.

At the moment, Bitcoin’s share of the market is at 63.8%, just shy of 64%. If Rekt Capital’s forecast proves accurate, we may witness a rise to 71% in the coming weeks, possibly prompting a market shift. “It is the Final Countdown,” the analyst stated.

Since April, Bitcoin has experienced a notable upward trajectory after dipping below $75,000, currently trading at $96,873, reflecting a slight increase of 0.6% over the past day and a total rise of 3.2% in the last week, amidst substantial purchases by large investors.

However, not all participants are holding on. Recent reports indicate that miners have sold approximately $850 million in Bitcoin as they navigate challenges related to reduced revenues following the halving event.