Altcoin season indicators rise as Bitcoin loses market share
Bitcoin’s market dominance has dropped to around 57%, while CoinMarketCap’s altcoin season index surged from 36 to 60 (out of 100) within a month. This signals that investors are shifting away from the flagship cryptocurrency into other digital assets.
Over the past three months, the altcoin market capitalization has grown from $1.2 trillion in June to nearly $1.6 trillion by late August. The CoinMarketCap index peaked in July, briefly declined, and has been rising again since then.
Charts tracking Bitcoin’s share of the crypto market show that it has fallen below the long-term upward trendline that had been intact since early 2023. Analyst Merlijn The Trader called this a turning point, noting that Bitcoin’s dominance topped 68% before reversing.
His chart generated a sell signal with a forecast that dominance could potentially drop into the 40% mid-range, unless Bitcoin stages a recovery.
Historical cycles support this outlook. After extended rallies, Bitcoin’s dominance usually declines as capital flows into altcoins. The higher highs and higher lows that defined Bitcoin’s strength in 2024 have now been broken, reinforcing altcoins’ advantage.
Technical indicators also confirm this. The monthly MACD has turned positive for the first time since 2022 — a rare occurrence historically followed by strong growth. Meanwhile, RSI remains above the midpoint, signaling further upside potential before the market overheats.
See also: "Bitcoin price today: drops to $111.5K amid rate and inflation concerns"
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