Investors Shift Focus to Altcoins as Bitcoin Dominance Declines

The cryptocurrency market is once again turning its attention to altcoins. The dominance ratio of Bitcoin $85,147 (BTC.D) has fallen below a significant support level, prompting discussions among investors about an “ altcoin season.” Experts suggest that a potential shift in capital flow could trigger a substantial rally in major altcoins, supported by current market data.

BTC.D Declines, Attention Turns to Altcoins

Recently, Bitcoin’s market dominance ratio experienced a notable break. Testing 63.98% on April 7, BTC.D could not surpass this level as a strong resistance. Although it briefly climbed above this resistance on April 16, it has since retreated to 63.83%. This shift indicates that investors might be turning towards cryptocurrencies outside of Bitcoin. If the downward momentum continues, the BTC.D ratio could drop to its monthly low of 63.16%.

This development has sparked noticeable activity in the altcoin market. The total market capitalization of altcoins, which stood at $991.26 billion at the beginning of April, dropped to $831.83 billion by April 7. However, a strong recovery of 11.6% between April 9 and 12 indicates that investors are once again focusing on altcoins. Currently, the altcoin market capitalization is at $958.43 billion, representing a decline of approximately 7.8% compared to the month’s peak.

Altcoin Investors Remain Hopeful

Signals for an altcoin season can be observed not only from market values but also from price movements. Popular cryptocurrency analyst Crypto Rover suggested via social media platform X that a significant capital inflow into altcoins could happen in the short term. Indeed, during the period when Bitcoin fell from $84,936 to $84,479, the altcoin market saw an increase of $1.36 billion.

Among standout altcoins, Ethereum $1,612 gained attention with a 0.85% increase, while Solana $141 and Dogecoin $0.159209 rose by 2.7% and 2.1%, respectively. Cardano $0.631012 also saw a similar rise. These figures indicate that investors are shifting their focus from Bitcoin to altcoins. If this trend continues, it might be possible to declare the start of a new altcoin season.

Moreover, April has proven to be quite dynamic for the cryptocurrency market. At the beginning of the month, the total market value was around $2.63 trillion, which dropped to $2.31 trillion due to a 9.8% decline between April 5 and 7. Nonetheless, a subsequent 11.71% increase within just two days indicates a significant recovery potential in the market. Currently, the total market value stands at $2.65 trillion, reflecting a 5.2% drop from the last peak.

Such fluctuations present both opportunities and risks for investors. However, the decline in BTC.D suggests that altcoin investors might see increased interest in the coming days. The failure to surpass critical resistance levels in BTC.D also supports a favorable outlook for altcoins from a technical analysis perspective.