Bitcoin (BTC) Dominance Holds Key to Altcoin Season, Analysts Forecast 2x to 10x Returns

Market analysts CryptoReviewing and CryptelligenceX have shared insights about Bitcoin’s current market dominance and its effect on altcoin performance.

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Bitcoin (BTC) price action has stolen the show throughout 2023, but several market analysts are now turning their attention to altcoins and the role that Bitcoin’s market dominance will play in their upcoming performance.

With BTC price having briefly touched $89,000 according to Binance, the market now appears to be pivoting, and as CryptoReviewing highlights, altcoins are waiting for their turn to run.

Related: Bitcoin price drops below $85K after hitting new all-time high — What’s next for BTC?

Bitcoin dominance, a metric used to gauge BTC’s market cap share relative to the total crypto market cap, excluding BTC, currently stands at 61%.

According to CryptoReviewing, this places Bitcoin dominance within the “max target range” of 60-65%. The remaining market dominance is shared among thousands of altcoins.

A glance at the seven-day price performance of several top altcoins reveals a varied landscape. While some alts have posted double-digit gains, others have experienced minimal price movement or even seven-day losses.

Among the seven-day gainers are Internet Computer (ICP), which surged over 60%, and ApeCoin (APE), which enjoyed gains of over 40%. Others, such as Solana (SOL) and Polygon (MATIC), are up around 10% for the week.

However, several alts, including Filecoin (FIL), ImmutableX (IMX) and STEPN (GMT), have seven-day losses ranging from 12% to 22%. Others, such as Lido DAO (LDO), NEAR Protocol (NEAR) and Chainlink (LINK), are showing minimal price movement.

Overall, seven-day price action for top altcoins appears largely muted compared to Bitcoin’s seven-day gains of over 30%.

Historical data and seven-day price action suggest that altcoins may be poised for better price performance in the coming weeks.

As highlighted by CryptelligenceX, several market indicators are pointing toward healthy seven-day price action in the altcoin market.

According to Cryptelligence, the seven-day pullback has cleared out over-leveraged positions, and funding rates have largely returned to neutral levels.

Furthermore, the seven-day price correction has also reset technical indicators, potentially setting up the next leg of the market cycle for altcoins.

Support levels from September are still holding strong, and October highs are serving as the maximum retracement target, Cryptelligence noted.

The market structure is still bullish on higher timeframes despite the seven-day consolidation phase, the analysis noted.

Historical data and seven-day price action suggest that altcoins may be poised for better price performance in the coming weeks.

However, it is important to note that seven-day price performance can vary significantly, and seven-day gains or losses do not guarantee future price movements.

Seven-day price movements can be influenced by a range of factors, including market sentiment, news, regulatory developments and the broader macroeconomic landscape.

Traders are advised to conduct thorough technical and fundamental analysis, and to exercise caution when making any trades.