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Bitcoinist 2024-12-27 18:30:48

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

The altcoin season could be closer than ever, as the Bitcoin Dominance has entered a historically favorable phase for alternative digital assets. According to a crypto analyst, the altcoin season has officially entered the 140-day Golden Window, a period marked by significant growth for altcoins . This phase is driven by a shift in Bitcoin’s dominance fueled by a change in investor interest from the leading cryptocurrency to other assets. Altcoin Season Set For Epic Surge In Q1 2025 A market expert known as ‘the crypto bullet,’ has revealed on X (formerly Twitter) that altcoins have entered the “140-day Golden Window,” a historical 20-week period during which non-Bitcoin cryptocurrencies skyrocket as Bitcoin’s dominance plummets. Earlier in November 2024, the Bitcoin Dominance peaked, indicating that the pioneer cryptocurrency was commandeering a more significant portion of the market then. This spike in Bitcoin‘s dominance coincided with its rise to an all-time high, as the massive demand and dwindling supply of the cryptocurrency led to a price spike above $104,000 . Despite topping in the past month, Crypto Bullet disclosed that the Bitcoin Dominance faced a rejection at the 0.618 Fibonacci retracement level. This level, corresponding to a 60% Bitcoin dominance , indicates that a trend reversal could be in play after 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 . Over the next 15 weeks, the analyst expects a Bitcoin dominance meltdown, predicting an aggressive decrease from its current level of approximately 58%, as indicated on the chart. This decline often signals a shift in investors’ demand and interest in Bitcoin to altcoins, leading to the start of the anticipated altcoin season . Based on the chart, the analyst suggests that by April 7, 2025, marking the end of the 140-day cycle, the Bitcoin dominance is projected to reach a bottom near 40%. If the Bitcoin Dominance enters this projected meltdown stage, Crypto Bullet has predicted that the First Quarter (Q1) of 2025 will be “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 Bitcoin Dominance declines, it signals that capital flows from Bitcoin to other alternative digital assets, indicating that investors are becoming more risk-on and exploring altcoins. In contrast, when this dominance is high, Bitcoin holds a more significant portion of market value, as investors are generally more focused on it than on other cryptocurrencies. A severe drop in Bitcoin Dominance often indicates that altcoin season may be on the horizon. The last significant altcoin season was seen during the previous bull run in 2021. At the time, Bitcoin’s dominance had fallen significantly, followed by a steep drop in its price.

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