Emily Walker
The altcoin season may be approaching quickly, as Bitcoin’s Dominance has entered a historically favorable time for other cryptocurrencies. A cryptocurrency analyst has indicated that the altcoin season is now in the “140-day Golden Window,” a 20-week stretch known for significant altcoin growth. This period is characterized by a shift in attention from Bitcoin to alternative assets.
Anticipated Altcoin Surge in Early 2025
A market analyst known as ‘the crypto bullet’ has shared insights on X (previously Twitter), stating that altcoins have entered this historical “140-day Golden Window.” This time frame typically sees non-Bitcoin cryptocurrencies soar as Bitcoin’s dominance declines. In November 2024, Bitcoin Dominance reached its peak, showing it was dominating more of the market at that time.
This surge in Bitcoin’s dominance corresponded with its record price, which exceeded $104,000, driven by a large demand combined with a limited supply.
Although it recently peaked, Crypto Bullet noted that Bitcoin Dominance has encountered resistance at the 0.618 Fibonacci retracement level, which suggests a potential trend reversal could be imminent.
Historically, after reaching a peak, Bitcoin dominance tends to take around 20 weeks to bottom out. Currently, the market is in the fifth week of this cycle, with 15 weeks remaining for further decline.
The analyst anticipates a significant downturn in Bitcoin dominance over the next 15 weeks, predicting it could drop from its current level of about 58%, as shown in the chart. This drop indicates a shift in investment interest from Bitcoin toward altcoins, heralding the start of the anticipated altcoin season.
The projection suggests that by April 7, 2025, at the conclusion of this cycle, Bitcoin dominance might fall to around 40%. If this decay occurs, Crypto Bullet believes that Q1 2025 will be “epic” for altcoins.
What is Bitcoin Dominance?
Bitcoin Dominance refers to the proportion of the total cryptocurrency market valuation that is represented by Bitcoin. This indicator is crucial for assessing market sentiment and forecasting trends.
A decrease in Bitcoin Dominance shows that funds are shifting from Bitcoin to other alternative digital currencies, reflecting that investors are pursuing higher risks and exploring altcoins. Conversely, a high dominance indicates that Bitcoin maintains a larger share of the market value, suggesting investors are more focused on it than on other cryptocurrencies.
A significant decline in Bitcoin Dominance often signals the approaching altcoin season. The last major altcoin season occurred during the bullish market of 2021, when Bitcoin’s dominance dropped sharply, followed by a considerable price decline.