Bitcoin Dominance Decreases, Suggesting a Potential Shift Towards Altcoins

Despite overall crypto market volatility, altcoins are showing signs of strength as Bitcoin's dominance weakens.

April has brought a mixed bag of market trends, with the total cryptocurrency market cap kicking off the month at $2.63 trillion. However, the first half of the month saw some significant drops, with the market decreasing 9.8% to reach $2.31 trillion by April 7.

Nevertheless, the market quickly recovered, and between April 9 and 12, it experienced a 11.71% increase. At present, the total market cap stands at $2.65 trillion, which is still 5.2% lower than this month's high.

In a similar vein, altcoins also mirrored Bitcoin's movements, but with some promising signs. Commencing April with a market cap of $991.26 billion, altcoins dropped to $831.83 billion by April 7. Nonetheless, a rebound of 11.6% pushed the altcoin market cap to $918.94 billion by April 12. Today, the altcoin market cap is approximately $958.43 billion, which is about 7.8% below April's peak.

On the four-hour chart of Bitcoin dominance, we can observe a clear peak at the 63.98% level on April 7, where strong resistance was encountered. A brief attempt to break above this level occurred on April 16, but the price quickly retreated. Currently, BTC.D hovers around the 63.83% mark.

If this trend continues, we might see Bitcoin dominance retesting the monthly low of 63.16%, which could further contribute to the optimism surrounding altcoins.

As Bitcoin dominance shows signs of weakening and top altcoins begin to climb, traders are watching closely. If this momentum holds, we could be at the start of a strong altcoin cycle.