Bitcoin Dominance is Finally Breaking Down: Will This Trigger an AltSeason in 2024?

After reaching interim highs, the Bitcoin price has begun to consolidate and is facing upward pressure as the selling volume escalates. This has caused the price to plunge below $67,500 and also displays the chances of the token dropping below $67,000. One of the main reasons for the pullback can be a drop in the BTC dominance, which has slashed below the bullish range. Hence, this indicates a notable shift in the attention of market participants away from the star crypto, Bitcoin.

The BTC dominance ranged within a rising wedge and reached the apex of the pattern. This also coincided with the dominance marking the yearly highs above 55%, a few days before. However, the sluggish movement of the price may have compelled the traders to look out for other investment options. As a result, the dominance levels have dropped below the lower crucial support levels along the ascending trend line. 

Besides, the RSI is forming consecutive lower highs and lows, which substantiates the bearish claim. This also signals the beginning of an altseason may be on the horizon, as the altcoin market cap has also triggered a bullish rebound. With this, the probability of a strong altseason has surged, which may begin if the levels reach beyond some range before the end of H1, 2024. 

As seen in the above chart, the altcoin market capitalization appears to be undergoing a parabolic recovery and is very close to the neckline of the curve. Moreover, the levels have rebounded from the lower support levels of the rising wedge, which suggests a huge bullish move may be fast approaching. However, the level that is trading around $1.11 trillion is required to enter the key resistance zone between $1.21 trillion and $1.26 trillion to initiate a fresh bullish spell. 

The RSI has triggered a bullish rebound before reaching average levels, which flashes huge bullish signals. Therefore, if the altcoin market cap reclaims the key resistance, then, the altseason is expected to kick off, which may elevate the levels beyond $2 trillion in no time. 

Also Check Out: Will Ethereum Follow Bitcoin’s Footsteps & Undergo a 20% Retrace for the Next 15 Days?