Bitcoin (BTC) Dominance Surges to 56.5%, Dragging Down Altcoin Prices

Mainstream altcoins like Lido DAO (LDO), EigenLayer (EIGEN), Dogecoin (DOGE), and Chainlink (LINK) dropped sharply in the last 24 hours.

Mainstream altcoins took a hit in the last 24 hours as Bitcoin’s dominance surged to 56.5%, impacting prices.

What Happened: Lido DAO (CRYPTO: LDO), EigenLayer (CRYPTO: EIGEN), Chainlink (CRYPTO: LINK), and Dogecoin (CRYPTO: DOGE) dropped sharply on Friday morning.

LDO dropped 8% to $2.07.

EIGEN fell 8.37% to $5.05.

LINK dropped 3% to $27.51.

DOGE dropped 3.3% to $0.3866, according to CoinMarketCap.

On the other hand, Pudgy Penguins (CRYPTO: PENGU) and Litecoin (CRYPTO: LTC) bucked the trend.

PENGU soared 505%.

LTC rose 5%.

Crypto YouTuber noted on仲間 that altcoins are mirroring a pattern from the previous cycle. Bitcoin’s dominance is peaking and then slowly declining. The current BTC dominance is 56.5%.

As dominance decreases, Bitcoin enters a consolidation phase, which precedes the altseason.

Related Link: HYPE, VIRTUAL, and ONDO: Altcoins Defining the Crypto Bull Run

Another analyst, “Sensei,” who has been investing in crypto since 2018, predicted on仲間 that altcoins are poised for a surge.

The 100-day simple moving average and the 150-day simple moving average just formed a golden cross on the weekly crypto market cap excluding Bitcoin chart. This is a bullish signal for altcoin prices.

#ALTCOINS are about to go parabolic pic.twitter.com/FGiIE3S7Hn

— Sensei (@Sensei_Crypto) December 10, 2021

It’s worth noting that Bitcoin’s dominance increased after its recent all-time high, causing altcoins to fall. Generally, during altseason, if Bitcoin dominance increases, altcoins crash, and vice versa.

#Bitcoin Dominance $BTC.D is retesting a previous S/R level

If $BTC Dominance keeps rising #Altcoins will keep bleeding out against Bitcoin

In order for #Altseason to start we need to see weakness on the #BTC Dominance chart pic.twitter.com/1pQvYHfmPZ

— TechDev (@TechDev_52) December 10, 2021

Looking ahead, another crypto analyst suggests that Bitcoin dominance might jump one last time to 58%-59%, triggering significant altcoin crashes. But this could set the stage for altcoin price surges as BTC dominance corrects.