Key Points
- Bitcoin’s dominance in the cryptocurrency market has decreased, allowing some momentum for altcoins.
- Despite price drops and declining dominance, the market remains in a Bitcoin-dominated phase.
Bitcoin’s Market Dominance Experiences Decline
Bitcoin’s dominance in the cryptocurrency market has recently faced a significant decline. This decrease is closely tied to the drop in Bitcoin’s price, which has fallen below the $60,000 mark.
Recent analysis of Bitcoin’s daily timeframe chart showed a challenging start to August, with consecutive declines pushing the price below the critical threshold. The price even reached a low of around $49,000, further impacting Bitcoin’s dominance.
Rebound and Current Status
Despite the challenges, Bitcoin experienced a notable rebound, pushing its price back to the $60,000 range. However, it has since slipped again. At the end of the latest trading session, Bitcoin saw a modest increase of 1.08%, closing at approximately $59,358. It continued to hover around the $59,000 level, with a slight decline of less than 1%.
The Relative Strength Index (RSI) remained below the neutral threshold, indicating a continued bearish trend. Bitcoin’s market dominance dipped to approximately 53%, with the highest dominance recorded this month being around 56.5%. At press time, Bitcoin’s dominance was at 55%.
Bitcoin Dominance vs. Altcoin Season
While Bitcoin’s dominance has experienced a decline, it has allowed a slight momentum gain for the altcoin season. Recent charts from the Blockchain Center show an uptick in altcoin activity.
However, the market remains in a Bitcoin-dominated phase, as altcoins have yet to consistently outperform Bitcoin. For an official altcoin season to be declared, 75% of the top 50 coins must perform better than Bitcoin over the last 90 days. Current data shows that this threshold has yet to be met, with many assets also experiencing declines similar to Bitcoin’s downturn.
