BTC Dominance Decline…Signs Of Altcoin Season Appearing?

As Bitcoin (BTC) dominance decreases, there is an analysis that the altcoin market may experience a bullish reversal, known as 'Altcoin Season'. BeInCrypto reported, quoting multiple analysts, that "Bitcoin dominance recently dropped from the 65% range to 63.31%".

Moreover, the ETH/BTC ratio rebounded from its 2020 lowest levels, rising more than 12% in the past 24 hours. Experts analyzed this as a "signal that capital inflow from Bitcoin to altcoins has begun".

The Altcoin Season Index, which gauges market trends, also surged from 23 to 41, entering the 'neutral' zone. Typically, when this index surpasses 75, it is considered a full-blown altcoin season.

Analysts predicted that "if Bitcoin dominance falls further and the Altcoin Season Index surpasses 50, there is a high possibility that funds will significantly shift from Bitcoin to altcoins".

Given that recovery signals within the altcoin market are being detected in various areas, investors are focusing on whether the upward momentum of the altcoin market will continue. If market sentiment strengthens further, the next target is expected to be the index surpassing 75, along with the materialization of an altcoin rally.