Altcoin Season Enters 140-Day Golden Window, What Does Bitcoin Dominance Have To Do With It?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous cycles and trends that shaped the investment landscape. The current state of the cryptocurrency market, particularly the altcoin season prediction, reminds me of the dot-com bubble of the late 90s – a time when everyone was betting on the next big thing.

It seems that the time for altcoins could be drawing nearer than ever, as the dominance of Bitcoin has stepped into a particularly advantageous historical phase for alternative digital currencies. As per a crypto analyst’s assessment, we are now within the 140-day Golden Window, a period known for substantial growth among altcoins. This stage is primarily influenced by a transition in Bitcoin’s dominance due to a shift in investor attention from Bitcoin to other assets.

Altcoin Season Set For Epic Surge In Q1 2025

A well-regarded market analyst, often called ‘the crypto bullet,’ recently shared on X (previously Twitter) an interesting prediction: altcoins have entered the “140-day Golden Period,” a historically potent 20-week span where non-Bitcoin cryptocurrencies typically surge while Bitcoin’s influence over the market declines. In early November 2024, Bitcoin Dominance reached its highest point, suggesting that Bitcoin was controlling a larger share of the market at that time.

The surge in Bitcoin’s influence occurred simultaneously with it reaching a new peak, as the significant interest and scarcity of this digital currency caused its price to skyrocket beyond $104,000.

Although Crypto Bullet had been leading for the past month, they announced that the Bitcoin Dominance encountered resistance at the 0.618 Fibonacci retracement point. This level, representing a 60% dominance by Bitcoin, suggests that a potential reversal of the trend may occur following the rejection.

Crypto Bullet has revealed that historically, Bitcoin dominance takes about 20 weeks to reach a bottom after topping out. As of writing, the market is in week 5 of this 140-day cycle, with only 15 weeks left for the Bitcoin Dominance to decline further. 

For the upcoming 15 weeks, it’s projected that Bitcoin’s dominance will weaken significantly, with a sharp drop expected from its present level around 58%. Such a decrease typically suggests a change in investor preferences and enthusiasm towards Bitcoin, moving instead towards alternative cryptocurrencies, marking the beginning of the anticipated altcoin boom period.

According to the given chart and the analyst’s interpretation, it is anticipated that by April 7, 2025 – which concludes a 140-day cycle – Bitcoin dominance may drop close to 40%. If this projected decrease in Bitcoin dominance occurs, as suggested by Crypto Bullet, the first quarter of 2025 could be quite extraordinary or “epic.

Understanding Bitcoin Dominance 

The Bitcoin Dominance represents the percentage of the total cryptocurrency market capitalization attributed to Bitcoin. This key technical indicator is usually used to measure investors’ sentiment and predict market trends.

When the dominance of Bitcoin decreases, it often means that money is moving from Bitcoin to various other digital currencies, suggesting that investors are growing bolder and venturing into alternative coins. On the flip side, when its dominance is high, Bitcoin tends to have a larger share of the total market value, which indicates that investors are primarily interested in it compared to other cryptocurrencies, as they are more concentrated on Bitcoin rather than exploring other options.

When Bitcoin’s influence over the cryptocurrency market noticeably weakens (indicated by a substantial decrease in Bitcoin Dominance), it could signal the beginning of an altcoin market surge, similar to what was observed during the strong bull run of 2021. During that period, Bitcoin’s dominance decreased substantially, leading to a sharp decline in its value as well.

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2024-12-27 21:42