For months, Bitcoin stole the show when it came to crypto, taking the capital out of the altcoin market. Shortly after the best cryptocurrency began its withdrawal, profits started to flow back to altcoins which have since skyrocketed in the past month.
BTC dominance shows how the battle between Bitcoin and altcoins got to the wire. Only one line remains between a continuous rise in the full alt season, or the top cryptocurrency approaching total dominance.
BTC’s dominance hovers at two-thirds market share
Cryptocurrencies are no longer just currencies; they are the building blocks of decentralized financing, a way to keep transactions private, and much more.
Bitcoin itself is still considered an experiment, but that stigma is disappearing day by day as institutions buy back the scarce assets as a safe haven. Altcoins, without a pair of contemporary utility, are still much more speculative, illiquid, volatile, and risky.
Related reading | A dangerous technical pattern in Bitcoin is back and it is breaking down
When Bitcoin and altcoins came into the public eye in 2017, the very first cryptocurrency’s lifespan and adoption helped it weather the best crypto winter much better. From top to bottom, it fell 84%, but by comparison, altcoins fell much further.
When all of this happened, Bitcoin went from the only kid on the block to just 35% of the full market share. But since then, altcoins have been in a downward trend against Bitcoin reaching a crucial moment. And it all rests on just one line.
BTC.D is resting on a clearly important line | Source: CRYPTOCAP-BTC.D on TradingView.com
What is next? Altcoin Season or total Bitcoin dominance?
Intraday price action is important, but the higher the timeframe, the more dominant a graph’s signals. Even BTC.D, a measure of Bitcoin’s dominance over all other altcoins, behave this way.
BTC.D currently rests on almost exactly two-thirds dominance. The monthly installment line shows why the level is so important.
Related reading | Altcoin Expert: Buy Crypto That Holds Up During Bitcoin Breakdown
The zone acted as a resistance for the first time after Bitcoin peaked in 2017, and again in 2019. Support failed to hold up, but dominance broke through again, and is now retesting the clearly critical line as support again.
If dominance holds, we could soon see a future of total Bitcoin dominance, with levels of 80% or more. If support can’t hold another, more profitable altcoin season is the likely outcome.
Whichever direction is taken, the market share of cryptocurrencies will change dramatically in the near future.
Featured image from Deposit Photos, Charts from TradingView.com