Bitcoin's dominance in the cryptocurrency market has risen to 61.0% in the past week, while altcoins have suffered a larger collective loss, according to data from CoinMarketCap. This trend has led popular market analyst Egrag Crypto to predict a potential short-term bust for the altcoin market.
Egrag Crypto notes that Bitcoin Dominance has completed an Adam and Eve Pattern, highlighting certain significant levels for its future trajectory. The Adam and Eve Pattern is a bullish reversal chart pattern that consists of two distinct bottoms. The highest point between these troughs acts as a resistance which a price break above confirms a bullish trend. Bitcoin Dominance has moved above this neckline resistance (59%). However, Egrag Crypto explains a stronger resistance lies at 62.30% capable of forcing a pullback to around 61.50%.
If Bitcoin Dominance fails to hold at this critical support level, a more pronounced decline could be in store, potentially driving Dominance to around 57%. This would translate to a rise in altcoin market shares, indicating a potential boost in altcoins prices in the short term.
While Egrag Crypto's prediction of a declining Bitcoin Dominance might mean some altcoins gain, the possibility of an altseason remains in the air. The altseason marks a period in the bull run where altcoins outperform Bitcoin. This is indicated by a fall in Bitcoin dominance amidst a general surge in crypto asset prices.
Analytics firm IntoTheBlock highlights several factors that are currently preventing the manifestation of an altseason, including a low level of network addresses, lack of real-world utility, and unfavorable macroeconomic conditions. The analysts at IntoTheBlock postulate that until these issues are addressed, investors are likely to experience isolated price surges in e.g. memecoins rather than a widescale altseason.
At press time, the crypto market remains valued at $3.13 trillion following a slight 0.07% increase in the past day. Bitcoin maintains a 61.0% dominance, followed by Ethereum (10.1%) and other altcoins (28.9%).