Bitcoin market share is declining! Analyst: The frenzy of the altseason is coming, Ether is ready to surge to "this point"

BTC dominance is declining

Over the past month, the BTC dominance index (BTC.D) has dropped from 60% to 56%, which represents the proportion of BTC market capitalization to the overall market capitalization of crypto assets. When BTC.D rises, BTC becomes more dominant; when BTC.D declines, funds may be flowing to other cryptocurrencies.

Image source: TradingView BTC.D chart

This number may seem insignificant, but it has crucial market implications. Based on historical experience, BTC.D tends to turn downwards after the peak of the Bull Market. Whenever this happens, the market will usher in a wave of significant fund reallocation—funds move out of BTC and flow into the AltCoin market.

Analysts point out that the current dominance of BTC has fallen below the support trend line of recent years. In the past month, the dominance of the Altcoin market has skyrocketed from 28.1% to 31.5%. If BTC.D continues to decline, the market influence of BTC will be further diluted, and Altcoins may usher in more opportunities.

Ether is preparing to surge to this point

And one of the main players in the capital flow of BTC.D's decline is undoubtedly the king of altcoins - Ethereum ($ETH). According to CoinGecko data, Ethereum ($ETH) has risen 10% in the past 7 days, reaching $3,734 at the time of writing.

Image source: CoinGeckoBTC price chart

Analyst DoctorProfit pointed out that Ethereum has formed a typical bullish pattern - a rising triangle on the monthly chart. This technical structure is formed by the support line below the channel and the horizontal resistance level, accumulating upward momentum while compressing price fluctuation.

Image source: XETH price chart

DoctorProfit pointed out that if Ethereum can break through the key resistance point of $4,000, it will become an important price catalyst, with a medium-term target potentially even as high as $8,000.

However, analysts also remind that $3,400 is currently an important support level, which can provide a buffer for pullback. If the support level is breached, it may trigger a short-term pullback consolidation. However, the overall market sentiment towards Ethereum remains bullish.

[Disclaimer] There are risks in the market, and investment needs to be cautious. Analyst views are for reference only. Users should refer to more diverse indicators to determine whether to invest, and consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.

The market share of Bitcoin is declining! Analyst: The crazy altcoin season is coming, and Ether is ready to surge to this point. This article was first published in 'encryption city'.