Bitcoin Dominance Drops, Poised to Break Multi-Year Support, Analysts Say

Bitcoin dominance, a key metric measuring Bitcoin's share of the total cryptocurrency market capitalization, has seen a significant decline. This shift signals a potential new cycle in the crypto market as alternative coins (altcoins) begin to gain traction.

Bitcoin Dominance Hits Multi-Year Low

According to TradingView data, Bitcoin's dominance has dropped from 60% to 56% over the past month. Analysts warn that this decline puts Bitcoin dominance at risk of breaking below a long-standing multi-year support trend line. An analyst noted on December 2 via an X post, "Bitcoin dominance looks so ready to break down through its multi-year support trend line."

Altcoins Gain Ground

As Bitcoin's dominance weakens, Ethereum’s share of the market has also dropped to 12.9%, while the collective dominance of other cryptocurrencies has surged to 31.5%, up from 28.1% last month.

This shift in market dynamics has led analysts to declare the onset of "Altseason," a period characterized by altcoins outperforming Bitcoin. The decline in Bitcoin dominance and its potential to break below critical support levels further reinforces this sentiment.

Altseason: A New Market Cycle

Altseason represents a phase where altcoins gain prominence, often driven by Bitcoin's reduced dominance. Analysts suggest this shift could bring renewed interest and investment into altcoins, signaling a broader diversification of the crypto market.

Bitcoin's Price and Market Activity

Despite the drop in dominance, Bitcoin continues to exhibit strong price action. The cryptocurrency’s trading volume reached $36.5 billion in the past 24 hours, marking a 15.33% increase. Bitcoin's price has also risen by 0.95% to $97,320, edging closer to the $100,000 milestone.

Bitcoin's market capitalization has seen a modest 0.78% growth, approaching $2 trillion. The recent all-time high of $99,655 leaves Bitcoin less than $500 away from breaking the six-figure mark.

The Road Ahead

As Bitcoin dominance declines and altcoins gain momentum, the cryptocurrency market appears to be entering a new phase. While Bitcoin continues to lead in terms of price and volume, the growing strength of altcoins underscores the market's evolving landscape.

With Bitcoin nearing its $100,000 price target and altcoins surging, the coming months promise to be pivotal for the cryptocurrency market's future trajectory.