The altcoin season may very well be closer than ever, because the Bitcoin Dominance has entered a historically favorable phase for alternative digital assets. In line with 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 generally 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 slice of the market then.
This spike in Bitcoin‘s dominance coincided with its rise to an all-time high, as the large demand and dwindling supply of the cryptocurrency led to a price spike above $104,000.
Despite topping up to now month, Crypto Bullet disclosed that the Bitcoin Dominance faced a rejection on the 0.618 Fibonacci retracement level. This level, corresponding to a 60% Bitcoin dominance, indicates that a trend reversal may very well be in play after the rejection.
Crypto Bullet has revealed that historically, Bitcoin dominance takes about 20 weeks to succeed in 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 say no further.
Over the following 15 weeks, the analyst expects a Bitcoin dominance meltdown, predicting an aggressive decrease from its current level of roughly 58%, as indicated on the chart. This decline often signals a shift in investors’ demand and interest in Bitcoin to altcoins, resulting in the start of the anticipated altcoin season.
Based on the chart, the analyst suggests that by April 7, 2025, marking the tip 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 likely be “epic.”
Understanding Bitcoin Dominance
The Bitcoin Dominance represents the proportion of the overall cryptocurrency market capitalization attributed to Bitcoin. This key technical indicator will likely be 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 have gotten more risk-on and exploring altcoins. In contrast, when this dominance is high, Bitcoin holds a more significant slice 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 could also be on the horizon. The last significant altcoin season was seen through the previous bull run in 2021. On the time, Bitcoin’s dominance had fallen significantly, followed by a steep drop in its price.
Featured image created with Dall.E, chart from Tradingview.com