The Return of Altcoin Season: Why Bitcoin Dominance Has to Fall to 62%

Another main reason why the altcoin season has not yet kicked in is because of the predominant market strength of Bitcoin. While Bitcoin (BTC) continues to drive the recovery, its dominance is still at a high, and this is keeping the rise potential of altcoins down. Still, past patterns show us that if the dominance of Bitcoin sinks significantly, that could be the catalyst needed to initiate an explosive altcoin rally.

Bitcoin Dominance Must Drop to 62%

Bitcoin dominance is sitting at about 64%, still keeping its hold on market direction. When BTC fluctuates—even by a small margin—it triggers instant reactions throughout altcoin prices, usually leading to declines.

There could be a change ahead, though. Crypto analyst Quantum Ascend indicates that an important 7-wave crash pattern has been concluded. The pattern, which peaked at 64.6% dominance, has now begun to reverse and might drop to 62%.

This threshold is significant. The previous instance where BTC dominance fell to 62% was on May 14, a time that saw a robust rally in all altcoins. If the dominance declines below 63.45%—the earlier Wave 6 low—it may signal a swift journey back to 62%.

As noted by Quantum Ascend, "Real momentum kicks in under 62%," which may be an indicator that an all-out altcoin season has just begun.

Altcoin Season Still Has Fuel Left

The argument regarding whether we're in an altcoin season or already missed it continues. Some observers in the market believe that we might never see a repeat of the 2021 altcoin rally, while others are optimistic.

A X (formerly Twitter) analyst thinks that altcoin season is not yet over. In their opinion, for a 2021-type rally, the altcoin market cap (apart from the top 10 coins) needs to break the $470 billion resistance level. This was the key level in earlier bull cycles and might be the takeoff point for the next altcoin rise.

Bitcoin Dominance and Altcoin Surge: A Correlation to Watch

While investors and traders keep a close eye on the BTC dominance indicator, the cryptocurrency market is at a crucial turning point. A fall below 63.45%, and particularly below 62%, could serve as the catalyst for altcoins to start their own strong rally—apart from Bitcoin's trajectory.

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