Bitcoin Dominance Breakdown Confirmed – Metrics Support A 2025 Altseason

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Bitcoin has climbed more than 7% since the beginning of the year, dominating the cryptocurrency market as it rebounds promisingly. This bullish trend is generating optimism among investors, but there’s a growing interest in altcoins, as people see potential for better returns in the larger crypto market. Typically, Bitcoin rallies pave the way for altcoins to follow suit, and the current market situation suggests that this pattern could be repeating itself.

Analyst Jelle recently offered insightful technical analysis regarding asset X, suggesting an impending change in market trends. Specifically, he highlighted TOTAL3—an index not including Bitcoin and Ethereum—seems ready to initiate a period of price discovery, where assets reach new highs due to rising demand. Furthermore, Bitcoin dominance, which quantifies Bitcoin’s share of the total cryptocurrency market, has recently weakened, indicating less control over the market by Bitcoin.

In simpler terms, these signs point towards a possible boom of alternative cryptocurrencies compared to Bitcoin, often referred to as an “alt season.” As Bitcoin is currently holding steady at critical points, it appears that the stage is set for other digital currencies to grab investor focus. The upcoming weeks will play a crucial role in deciding if this trend picks up speed, potentially altering the market scenario for 2025.

Time For An Alt Season

In the year 2024, Bitcoin experienced remarkable growth, hitting unprecedented highs and firmly maintaining its role as market frontrunner. As we move into 2025, Bitcoin remains robust, but a potential change in market trends might be imminent. Typically, Bitcoin’s influence wanes during phases when alternative cryptocurrencies gain popularity, and this trend could repeat itself in 2025.

Analyst Jelle recently shared valuable insights about evolving market trends by conducting an intricate study of TOTAL3 and Bitcoin’s dominance. TOTAL3, an index monitoring the market capitalization of altcoins excluding Bitcoin and Ethereum, seems ready to embark on a phase known as price discovery—a period during which assets test new heights due to increased demand. At the same time, Bitcoin’s control over the market has recently weakened significantly, hinting that altcoins could soon become more popular among investors.

Jelle’s study shows us that when Bitcoin reaches crucial points of stability, money tends to move towards alternative cryptocurrencies, leading to what is commonly called an “altcoin season.” In these instances, altcoins have typically performed better than Bitcoin, yielding significant profits for investors who choose to broaden their portfolios.

2025 could prove to be an exceptional year for the entire cryptocurrency sector, given Bitcoin’s robust base and the possibility of altcoins outshining it. As TOTAL3 gets nearer to price exploration and Bitcoin’s dominance decreases, the chance for altcoins to excel becomes more apparent.

Price Action: Key Levels To Watch 

At present, Bitcoin is being traded at approximately $97,900. It’s challenging the significant 4-hour 200 Moving Average (MA) at around $98,139. This specific level is critical for BTC as it indicates whether the bulls can recover and push the price beyond the $100,000 threshold. If they manage to do so and maintain their position above this level, it would suggest a resurgence of bullish sentiment and set the stage for a powerful surge forward.

Nonetheless, the market continues to be wary, and if Bitcoin doesn’t maintain its position above the 4-hour 200 Moving Average, it might lead to a prolonged phase of sideways movement. This prolonged pause could challenge the resilience of both traders and investors. The critical support level to keep an eye on is the 4-hour 200 Exponential Moving Average (EMA) at approximately $95,881. Falling below this level might hint at a more significant correction, causing speculation about a possible return to areas of lower demand.

Currently, whether Bitcoin can maintain its position above the 4-hour 200 Moving Average and move upward significantly will determine its immediate path. If it manages to sustain an uptrend beyond $98,139 and break through $100,000, this would signal a strong bullish trend. On the flip side, falling below the 4-hour Exponential Moving Average might postpone the next phase of the rally, leaving the market in a state of doubt. The upcoming days will play a crucial role in determining Bitcoin’s direction.

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2025-01-05 04:11