Market Specialist Claims Dominance Has Reached Its Limit
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The market dynamics show fluctuations and evolving trends.
On Wednesday, Raoul Pal, the founder of Real Vision and a notable name in trading, suggested that Bitcoin’s dominance may have peaked during this cycle.
In a post on X, Pal mentioned that the signals from DeMark Indicators indicate a potential shift following a prolonged period of Bitcoin leading the market. He pointed out that daily, weekly, and monthly charts are all signaling a peak in Bitcoin’s dominance.
Additional Insights
Currently, Bitcoin’s dominance stands at nearly 65%, a number that has gradually risen since December 2024. Nevertheless, it has yet to match the 2021 high of 74% or the previous high of 2017. According to Pal, this suggests a diminishing trend in Bitcoin’s share of the cryptocurrency market over time.
DeMark Indicators Indicate Caution
Pal referenced the DeMark Indicators, a technical analysis tool crafted by Tom DeMark. These indicators help pinpoint when a trend might be losing strength. Although Pal did not specify the exact signals he observed, one of the functions of the TD Sequential is detecting pivotal moments like this.
“I believe BTC dominance peaked today. There are daily, weekly, and monthly DeMark signals in play, and the peak is significantly lower than the 2021 high, which was below the 2017 high,” Pal remarked. “If this trend holds, it could signify a transition into the next phase of the market.”
Currently, Bitcoin has seen a rise of over 6% since the start of 2025 and has recently surpassed the $103,000 mark. The cryptocurrency is inching closer to the $105,000 threshold. However, while Bitcoin increases, many other cryptocurrencies are lagging behind.
Altcoin Market Struggles
Statistics reveal that the TOTAL2 index, which reflects the cryptocurrency market’s value excluding Bitcoin, has dropped nearly 20% this year, decreasing from $1.34 trillion to $1.07 trillion. This disparity has contributed to an increase in Bitcoin’s dominance. If Pal’s assessment is accurate, this gap may begin to close soon.
Pal suggests that once Bitcoin’s dominance hits a peak, investment may shift toward altcoins. Traders often redirect their capital from Bitcoin to smaller currencies as they sense the leading asset has peaked. This pattern has occurred in the past, and Pal believes it may happen again.
The Banana Zone Concept
Pal also introduced the concept of the “Banana Zone,” which he uses to describe a phase where prices exhibit rapid growth in a curved trajectory, resembling a banana shape. He categorizes this into three stages, with the first stage commencing in November 2024 when cryptocurrency prices began to surge.
Additional Insights
He now contends that we are entering the second stage, termed the “Banana Singularity.” In this phase, altcoins typically start to outpace Bitcoin as more investors look for higher returns in riskier assets. It is typically during this time that significant movements are observed in lesser-known cryptocurrencies.
Potential Altcoin Season Ahead
Pal’s message is clear: Bitcoin’s dominance period may be tapering off. If the technical indicators prove accurate, altcoins could soon come to the forefront. Historically, during previous bullish trends, investment has shifted from Bitcoin into altcoins as the number one asset’s dominance began to wane.
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