‘Outsized’ Altcoin Season Incoming Once Key Bitcoin Metric Reverses Uptrend, According to Crypto Analyst
A closely followed crypto analyst says altcoins may undergo an explosive rally once a key Bitcoin (BTC) metric reverses.
In a new strategy session, crypto trader Rekt Capital tells his 536,300 followers on the social media platform X that the Bitcoin dominance (BTC.D) metric may soon enter a downward phase after hitting a historic peak level, setting alts up to outperform the flagship crypto asset.
Bitcoin dominance currently stands at 61.86%. Traders use BTC.D to track if altcoins are outperforming Bitcoin as the metric calculates how much of the crypto market cap belongs to BTC.
Rekt also says that alts may have smaller rallies when there are temporary BTC.D pullbacks before a trend reversal.
“Yes, Bitcoin dominance is in a macro uptrend that could see it revisit 71% over the course of the next few months But as with any macro uptrend pullbacks do happen as part of the journey in the meantime.
And it is these pullbacks in Bitcoin dominance that will enable altcoin windows. These altcoin windows may progress in line with altcoin hype cycles, whereby increases in altcoin valuations occur during the second half of respective quarters. It’s just that these altcoin windows (i.e. retraces in Bitcoin dominance) may be 5%-10% deep during the macro Bitcoin dominance uptrend.
But once Bitcoin dominance revisits 71% and rejects from there that’s where an outsized correction would take place. And an outsized Bitcoin dominance correction would create an outsized altseason.”
He also says that Bitcoin dominance is entering a phase of the market that historically leads to a breakout for altcoins.
“Bitcoin dominance has finally broken into its 58%-71% range (green-red). And every time BTC dominance broke into this range, Bitcoin dominance would revisit 71% (red) before rejecting harshly to the downside to enable a strong altseason.”
He notes that BTC.D has historically hit the 71% level before correcting.
“There’s a lot of speculation about whether Bitcoin dominance will even be able to revisit the 71% resistance Historically, everything BTC dominance has broken into the 58%-71% macro range, it would revisit 71%. This has happened three out of three times. History suggests the Bitcoin dominance macro tops don’t seem to change much across time.”
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