Analyst Predicts Next Altcoin Season: Bitcoin Dominance Key to Breakout
A popular crypto analyst, known as Rekt Capital, has shared insights into what could trigger the next altcoin season.
According to him, the key lies in Bitcoin’s dominance over the crypto market.
Rekt Capital believes that for altcoins to rally, Bitcoin’s market dominance must start declining. He predicts that this drop could begin next year when Bitcoin’s dominance level reaches around 71%. Although he didn’t specify an exact date, he emphasized that the next altcoin season would likely kick off when Bitcoin’s dominance falters from that peak level.
The strategist also pointed out that Bitcoin’s dominance dynamics have shifted compared to previous cycles. He highlighted that the Monthly Relative Strength Index (RSI) for Bitcoin dominance is now approaching new all-time highs, following a successful retest of the November 2024 RSI level as support.
Historically, the monthly RSI at 60 marked the peak of Bitcoin dominance in August 2019 and December 2020. However, this time around, Rekt Capital notes that the same RSI level now acts as a support rather than a resistance, indicating a fundamental change in the dominance structure. In previous market cycles, RSI 60 was the ceiling, but in this cycle, it appears to be forming the floor.
This shift in RSI behavior could signal a longer period of Bitcoin holding dominance before any significant drop, which Rekt Capital believes is crucial for the next altcoin surge. As Bitcoin’s dominance remains high, the altcoin market may stay subdued until that dynamic changes.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
