Bitcoin Dominance Drops as Altcoins Gain Strength, Is an Altseason Coming?

• Bitcoin dominance is weakening, signaling a potential shift of capital into altcoins as BTC .D drops from 62% to 54%.
• A bearish divergence on the BTC.D chart and RSI breakdown suggest continued downside, favoring altcoin market growth.
• Increased selling pressure on BTC.D with multiple red candles and rejection at highs points to rising altcoin demand.

As per Titan Of Crypto’s data , Bitcoin dominance is weakening, making way for an altcoin season. The altcoins are gaining strength as suggested by bearish divergence on the Bitcoin Dominance (BTC.D). Even though BTC.D reached a high of 62%, it fell sharply and plunged to around 54%. This means Bitcoin’s market share is weakening, which could lead to altcoins reversing.

Bearish Divergence on Bitcoin Dominance

As Bitcoin’s dominance increased, the Relative Strength Index (RSI) was unable to reach new heights. This bearish divergence supports the change in market sentiment by pointing to a waning trend. Additionally, the BTC.D chart’s successive red candles attest to heightened selling pressure.

Additionally, long upper wicks near recent highs signal rejection at higher levels. This rejection suggests sellers are gaining control. The RSI’s break below key levels further supports a bearish outlook for Bitcoin dominance. Hence, capital may flow into altcoins as investors seek opportunities beyond Bitcoin.

Altcoins Set to Benefit from Declining Bitcoin Dominance

As Bitcoin dominance weakens, altcoins could experience increased demand. Historically, a drop in BTC.D coincides with stronger altcoin performance. Lower Bitcoin dominance means more market participants are allocating funds to alternative cryptocurrencies. 

Furthermore, a bearish market configuration on the BTC.D indicates further downside potential. In this case, where selling pressure persists, the downtrend in Bitcoin dominance could theoretically continue Its decline. 

It may seem likely that in this situation, altcoin traction would increase alongside heightened market interaction. The current downward RSI movement aligns with declining Bitcoin dominance. If Bitcoin dominance remains bearish, altcoins could gain further traction.

Market Outlook and Key Levels to Watch

The percentage scale on the BTC.D highlights Bitcoin dominance falling from 62% to 54%. If the downward trend continues, dominance could drop further. This scenario would provide altcoins with more market share and liquidity. Moreover, technical indicators support a prolonged bearish trend for BTC.D. The presence of multiple red candles reinforces the ongoing selling pressure.