The Altcoin season could be closer than ever as Bitcoin dominance has entered a historically favorable period for alternative digital assets. According to a crypto analyst, altcoin season has officially reached the 140-day golden window, a period marked by significant growth for altcoins. This phase is driven by a shift in Bitcoin’s dominance, driven by a shift in investor interest away from the leading cryptocurrency and towards other assets.
The altcoin season is poised for an epic surge in the first quarter of 2025
A market expert known as the “Crypto Bullet” has revealed on X (formerly Twitter) that altcoins have entered the “140-day golden window,” a historical period of 20 weeks Non-Bitcoin Cryptocurrencies explode as Bitcoin dominance declines. At the beginning of November 2024 the Bitcoin dominance reached its peak, suggesting that the pioneer cryptocurrency captured a larger portion of the market at this point.
This rise in Bitcoin’s dominance coincided with its rise to an all-time high as the cryptocurrency’s huge demand and dwindling supply caused it to surge Price rises to over $104,000.
Despite peaking last month, Crypto Bullet revealed that Bitcoin dominance would face rejection at the 0.618 Fibonacci retracement level. This level corresponds to a 60% Bitcoin dominancesuggests that a reversal could be underway following the rejection.
Crypto Bullet has revealed that historically it takes around 20 weeks for Bitcoin dominance to bottom after peaking. At the time of writing, the market is in week 5 of this 140-day cycle with only 15 weeks remaining Bitcoin dominance will continue to decline.
Over the next 15 weeks, the analyst expects a collapse in Bitcoin dominance and predicts an aggressive decline from its current level of around 58%, as indicated in the chart. This decline often signals a shift in investor demand and interest in Bitcoin towards altcoins, leading to… Start of the expected altcoin season.
Based on the chart, the analyst expects Bitcoin dominance to be achieved by April 7, 2025, the end of the 140-day cycle reach a bottom almost 40%. If Bitcoin dominance enters this predicted phase of collapse, Crypto Bullet has predicted that the first quarter (Q1) of 2025 will be “epic.”
Understanding Bitcoin Dominance
Bitcoin dominance represents the percentage of the total cryptocurrency market capitalization attributed to Bitcoin. This important technical indicator is typically used to measure investor sentiment and predict market trends.
If Bitcoin dominance declines, it signals that capital is flowing from Bitcoin to other alternative digital assets Investors are becoming more willing to take risks and explore altcoins. On the other hand, when this dominance is high, Bitcoin has a larger share of the market value because investors are generally more focused on Bitcoin than other cryptocurrencies.
A heavy one Decline in Bitcoin Dominance often indicates that altcoin season is approaching. The last significant altcoin season took place during the previous bull run in 2021. At that time, Bitcoin’s dominance had declined significantly, followed by a sharp drop in price.
Featured image created with Dall.E, chart from Tradingview.com