Despite the profits seen in the market, the Altcoin season is still far from beginning, as shown by how high Bitcoin’s advantage is still. Bitcoin’s dominance over the Crypto market remains a major determinant of when the Altcoin season will begin, depending on how high or low it is. With the advantage still above 60%, it could still regain a critical level and crash the Altcoin market again.
Bitcoin’s advantage puts a complete breakdown at risk
Crypto analyst Colin says Crypto took X and explains where Bitcoin control sits and what will happen next. Analysts point out that the domination appears to be staged December 2024 iterations and appears to be broken from the blue channel where he saw Altcoins Rally.
Once the decline falls below the 61% level, dominance has once again fallen under this channel, and is now trending outside. But, just like in December 2024, Colin explains that this could be another fake. In that case, control can quickly turn back and continue to rise again. In the case of a fake out, the market could tank again, and the altcoins could bear the brunt of decline.
Alternatively, this movement could be demonstrated by retesting the channel and subsequent failures. As Colin explains, Bitcoin’s dominance could rise and retest the underside of the blue channel at around 62%. However, if it breaks down again after that, it is confirmed that the Altcoin season has begun.
Similarly, Ethereum appears to have bottomed against Bitcoin this month as the ETH/BTC charts reversed. This is also another indication that Bitcoin’s dominance could end, and that the start of the next altcoin season is turning the corner.
Why the Altcoin season is still at risk
Bitcoin’s advantage means that it is still sitting near the bottom of the channel. This means that the risk of a reversal remains high. In fact, control could potentially regain the channel. This is disastrous for the Altcoin market. Colin explains that if this happens and Bitcoin’s dominance returns to the channel again, it means that the Altcoin season hasn’t started.
With the possibility of a sideways chop, reversal to the channel is not the only scenario that could be negative for an altcoin. Analysts explain that this scenario isn’t great for Altcoins as sideways chops can last for months and Altcoins may bleed accordingly.
The most bullish scenario of the Altcoin season continues to be that there is a sustained breakdown of the channel. During this period, “Even if BTC control is declining, BTC prices can continue to be high. During this period, both ALTS and BTC may increase USD values,” Colin said.
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