On Friday, November 15, Bitcoin's (BTC) dominance—a measure of its share in the overall cryptocurrency market—looked ready to climb to 65%. But that didn’t happen. Instead, Bitcoin's price fell short of hitting $93,000. This could mean that the altcoin season is starting.
This pause in Bitcoin's momentum seems to be opening up opportunities for altcoins, which have lagged behind BTC for a while. Now, the big question is whether Bitcoin's dominance will keep dropping as altcoin prices start to rise.
Currently, Bitcoin's dominance has dropped to 60%. This decline goes against some analysts' predictions that Bitcoin could soar to $100,000 soon. According to BeInCrypto, this drop may be tied to the rising performance of altcoins. Just a few days ago, the altcoin season index was at 33. Today, it’s up to 39, based on data from Blockchaincenter.
This increase suggests that more altcoins in the top 50 are outperforming Bitcoin. For instance, tokens like Bonk (BONK) and Ripple (XRP) are still gaining ground, which is boosting the altcoin market cap and pushing down Bitcoin's dominance.
Moreover, the market is showing extreme greed right now. The Crypto Fear and Greed Index, which gauges sentiment around Bitcoin, has hit a striking "Extreme Greed" level of 90. Typically, when there's "Extreme Fear," it signals heightened anxiety among investors, potentially presenting a buying opportunity. On the flip side, too much greed often indicates that a market correction could be on the horizon.
Given the current situation, Bitcoin's price might be due for a correction. This aligns with what analyst Rekt Capital suggests. He believes that altcoins might soon break out because of Bitcoin's falling dominance. He shared, “We are seeing the effects of the best-case scenario in full force. It’s Altcoin season. The pullback in BTC DOM to 57.68% is enabling this Altcoin Window. Continued dips to green will enable Altcoin breakouts.”
Meanwhile, the TOTAL2, which represents the total market cap of the top 125 altcoins, including Ethereum (ETH), has reached $1.19 trillion. This is the first time it’s hit this level since June. The daily chart reveals that TOTAL2 achieved this due to strong interest in altcoins and a breakout from a descending triangle pattern. While a descending triangle is usually seen as bearish, it can also indicate a bullish reversal if the price breaks out in the opposite direction. That seems to be happening with altcoins.
For the altcoin season to really take off, Bitcoin's dominance needs to keep falling, and the altcoin season index should move closer to 75 from its current 39. If that happens, TOTAL2 could rise to $1.27 trillion. However, if Bitcoin's price bounces back above its all-time high, the altcoin season might be delayed, and this prediction could change.