BTC Dominance Chart - BITCOIN DOMINANCEBTC Dominance is the most important chart to follow to understand whether the crypto market is in an altcoin or Bitcoin season.
Currently, Bitcoin Dominance is in a strong bullish trend and has reached the 60% level. This means that Bitcoin alone holds 60% of the total crypto market value. In other words, the entire altcoin market, including ETH and other large-cap coins, represents only 40% of the market. Considering the crypto market has over 2,500 different coins/assets, it’s notable that all of them combined only account for 40% of the total market value, while Bitcoin alone makes up the other 60%.
In previous bull market cycles, this chart typically shows initial bullishness, followed by a strong reversal to the downside after a few months, which brings the largest returns in the altcoin market.
A bullish trend in BTC Dominance indicates that Bitcoin will outperform altcoins, whereas a bearish trend suggests the opposite.
Currently, BTC Dominance is moving within a parallel channel driving its bullish movement. It has reached the weekly supply level and is now approaching the monthly supply level. I expect BTC Dominance to hit this monthly supply level at the top of the channel, experience rejection, and start moving lower. Eventually, I anticipate it will break below the entire channel, signaling a large influx of capital into altcoins. This shift has the potential to create significant returns for altcoin investors.
I believe this scenario is likely during the 2025 bull cycle, so be prepared to build generational wealth.
