Bitcoin Dominance Dilemma – Why Capital Flows Back To BTC Before Fuelling Altcoin Rally

Bitcoin Dominance Dilemma – Why Capital Flows Back To BTC Before Fuelling Altcoin Rally
Bitcoin Dominance Dilemma - Why Capital Flows Back To BTC Before Fuelling Altcoin Rally

the Cryptocurrency The market, a landscape known for its volatility and rapid innovation, operates according to a rhythm dictated by the dominance of Bitcoin and the subsequent explosion of altcoins. This pattern is evidence that the market is still moving to Bitcoin’s pace, positioning it as an invisible conductor of this vast digital sector.

How Bitcoin dominance reaches its peak before the altcoin euphoria

In X mailSwissblock reported that the Bitcoin and Altcoin cycle continues to indicate that the cryptocurrency market remains firmly entrenched in BTC dominance. Despite emerging narratives and market behavior, the market is now approaching full Bitcoin season territory, a phase where capital seeks safety and structure within Bitcoin.

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However, this turn An interesting nuance is that dominance does not rise as expected, but stabilizes, indicating early signs of readiness for rotation. BTC is still driving the narrative, commanding attention and trust, but the dominance curve appears to be leveling off.

If Bitcoin can maintain its stability while altcoin pulses expand, the market may soon evolve from a Bitcoin-led phase to a mixed system, a phase in which altcoin leadership will begin to emerge again.

Daan Crypto Trades is also a leading cryptocurrency trader and full-time investor newly Offer a key technical perspective on the current state of the cryptocurrency market, Bitcoin’s dominance, and its implications for… possible Breakout of the all-time high (ATH).

source: Chart of Swissblock on X

According to Dan’s analysis, Bitcoin has been steadily outperforming altcoins in recent weeks, a dynamic he considers healthy and necessary for the broader market. As Bitcoin dominance rises, capital and attention gather around Bitcoin, boosting confidence and creating the conditions for a convincing breakout towards ATH.

The analyst noted that this phase of Bitcoin strength could extend even further, potentially pushing Bitcoin dominance as high as 60% before then. Alternative currencies Start catching up again. He believes this dominance spike may be a retracement within a larger downtrend on the BTC dominance chart. Despite this shift, Dan maintains a balanced approach, maintaining a 50/50 split portfolio Bitcoin and Ethereum Spot positions in altcoins, a strategy he has been following for some time.

Why Bitcoin’s power still matters

While Bitcoin’s dominance is trending upward, Kourosh AK, founder of ZCTraders, says, Highlight As long as BTC price remains above the 0.382 Fibonacci retracement level at around $119,400, altcoins will not go into panic mode. Additionally, the broader market will continue to position itself for all-time high potential breakouts.

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However, BTC may experience a Short-term decline Towards the midpoint at around $116,000. Thus, if BTC remains resilient above current support, an expansion towards $125,000 could lead to a clear breakout to new highs, reaffirming the bullish market structure. Kourosh also addresses the psychology behind this type of trading approach, as a disciplined trader must always prepare for two scenarios when trading.

Bitcoin
BTC trades at $121,501 on 1D chart | Source: BTCUSDT Tradingview.com

Featured image from Pixabay, chart from Tradingview.com

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