Bitcoin Dominance is About to Break Down, Shifting the Cryptocurrency Market Towards Altcoins

Recent analysis by popular crypto influencer Crypto Rover (@rovercrc) indicates that Bitcoin dominance, a measure of Bitcoin's percentage of the entire cryptocurrency market, is close to breaking down

Bitcoin is threatening to break down a key market structure that could have huge implications for the cryptocurrency landscape.

If Bitcoin pulls back from here, we're looking at a potential shift in momentum that could favor altcoins.

Capital shifting out of BTC and into altcoins

As capital pulls out of Bitcoin and pivots towards altcoins, traders are advised to keep an eye on trading pairs that include altcoins, as they may soon present lucrative trading opportunities.

For instance, the ETH/BTC trading pair was seen rallying on Binance, managing to break above the 20-day moving average shortly after 11:31 AM UTC. This jump showcases that Ethereum might be gaining strength in comparison to Bitcoin, prompting traders to contemplate entering long positions on this pair.

Other altcoins are following suit. The ADA/BTC and SOL/BTC pairs broke above their respective 20-day moving averages on Coinbase at the same time, suggesting potential bullish trends for these cryptocurrencies against Bitcoin.

Increased trading volumes across these pairs on Binance further underscores the growing investor interest in altcoins.

Active addresses on the Ethereum network have also been on the rise, according to Etherscan, indicating a surge in network activity that could herald further price appreciation.

At the same time, Ethereum's Market Value to Realized Value (MVRV) ratio stands at 1.2, suggesting that the asset is neither overbought nor oversold, leaving room for potential upside.

Bitcoin has been pulling back slightly, and this move might be a result of various technical factors. The Relative Strength Index (RSI) for Bitcoin was noted to be at 68, indicating that it might be moving into overbought territory.

In contrast, Ethereum's RSI was at a more modest 55, reflecting a more balanced condition within its market.

Technical analysis also revealed a bullish crossover in the moving average convergence divergence (MACD) for ETH/BTC at the same time, further bolstering the positive outlook for this trading pair.

Trading volume for ETH/BTC saw a surge from 12,200 to 14,500 BTC within an hour, showcasing continued interest and potential momentum.

As the crypto market shifts, advances in AI technologies are simultaneously playing a role, though no direct AI-related developments have been reported that would impact the crypto landscape.

However, the advent of AI-driven trading algorithms is being observed to uplift trading volumes of certain crypto assets, particularly those focused on AI applications. Tokens like SingularityNET (AGIX) and Fetch.AI (FET) may see an uptick in volume and price movements following ongoing AI advancements.

On the other hand, Ethereum (ETH) finds itself at a crossroads as it struggles to break free from a critical psychological barrier and faces multiple bearish pressures that could unravel its recent successes.