Rekt Capital Observes Bitcoin Dominance at Empirical High of 71%, Signaling the Possible Start of Alt Season

According to the latest analysis, Bitcoin needs to maintain a continuous market cap of 70% to begin “alt season.”

Cryptocurrency analysis firm Rekt Capital has made an interesting observation: Bitcoin’s market dominance is currently at an empirical high of 71%. However, this could be a sign that alt season is about to begin.

According to the latest analysis, Bitcoin needs to maintain a continuous market cap of 70% in order to begin “alt season.” Currently, Bitcoin’s dominance is at 61%, but it reached 64.3% earlier this week, as confirmed by TradingView.

Bitcoin Dominance Could Increase Further

This week, Bitcoin has shown exceptional performance, with the token's market dominance reaching a four-year high. However, the question remains whether Bitcoin achieved this feat single-handedly.

The answer is likely no. The recent inflation and price correction of major altcoins played a crucial role in boosting Bitcoin's market dominance.

Currently, Bitcoin's dominance stands at 61%, having reached 64.3% earlier this week, as evidenced by TradingView data.

Several factors could contribute to an increase in Bitcoin dominance. One key aspect is the strength of BTC's price action, which is influenced by the market prospects of altcoins.

Moreover, BTC's dominance reached a low of 55% in December 2024, marking the bottom of alt season.

To begin the new alt season, most market analysts agree that altcoins need to gain another 16% using the current assets.

Altcoin Corrections Aided Bitcoin

Among the altcoins that could experience deeper corrections are ETH, Solana, Polka Dot, Binance Coin, TRON, and others. During this period, BTC dominance would become more evident.

On the same note, losses ranging from 50% to 85% might also be encountered by the mentioned altcoins.

This scenario aligns with the market's preparation for alt season, contrasting the previous season's conclusion, which was marked by a bearish downtown in the market.

This divergence is easily captured by the relative strength index, which is published weekly.

If current trends were to hold, there would soon be a shift from the chronic BTC dominance, while the market is set to witness new higher peaks.