Bitcoin (BTC) has been dominating the cryptocurrency market for years. While BTC still retains this power, a drop in strength could mean a boost for altcoins. Bitcoin domination is a metric used to compare the market value of Bitcoin with the rest of the cryptocurrency domain. Reports show that Bitcoin domination, a level defined by experts as the turning point of an altcoin rally, is close to 58%.
Bitcoin dominance peaked almost a year ago, and has since steadily declined, meaning its dominance over the rest of the crypto space has been held in balance. Although an altcoin season is predicted to be held by experts this year, it is not yet fully manifested, but altcoins may have the chance to accumulate with a predictable collapse of Bitcoin in the market. Altcoins have gained some momentum since the beginning of the year, but if they fail to assess this dominant gap, Bitcoin returns and regains its dominance.
Two short-term rally by Bitcoin last month gave the opportunity to enter the bottom, causing a drop for altcoins until the price came to a halt on the third day. Experts attributed the long-running horizontal trend this year to altcoins that have lowered their value or are against the BTC. There is always a direct correlation between Bitcoin and other crypto assets, because whenever Bitcoin explodes, two situations arise: In the first case, altcoins cannot gain any independent momentum until BTC looses its firm grip in the second case.
Altcoin Rally Matures
In February, many altcoin made extraordinary gains in the crypto market, and BTC dominance dropped to 60%. However, with a downside graphic formation on Bitcoin’s dominance, some expected altcoin rally can finally take place. Ethereum, leading the rally, has seen a significant breakthrough with a $ 500 target, and according to experts, this can finally provide the spark that altcoins need for rally.
Compound (Comp), Cardano (ADA), Chainlink (LINK) and Kyber Network (KNC) saw a significant increase in value against Bitcoin and USD. Comp has gained over 500% since last month, and at some point it rose more than 1000% from its initial price during its launch. Bitcoin’s dominance metric is slowly moving towards its critical level, and if altcoins continue to perform better than this, an extraordinary rally may occur soon.