A closely followed crypto analyst says that altcoins may start outperforming Bitcoin (BTC) once one key metric hits a pivotal level.
The pseudonymous analyst known as Rekt Capital tells his 545,100 followers on the social media platform X that the Bitcoin dominance (BTC.D) metric may soon enter a downward phase, setting alts up to outperform the flagship crypto asset.
Bitcoin dominance currently stands at 64.73%. Traders use BTC.D to track if altcoins are outperforming Bitcoin as the metric calculates how much of the crypto market cap belongs to BTC.
“If history repeats, the real altseason everybody is waiting for would begin once Bitcoin dominance rejects close to or directly from 71% (red).”
The analyst also says that BTC.D is likely reclaiming 64% as support on the monthly chart, resembling a similar pattern that occurred in 2019, when the metric surged to hit 71% before entering a downtrend.
“BTC dominance indeed successfully retested November 2024 highs (black) to revisit ~64% (blue). Now, Bitcoin dominance is positioning itself for a reclaim of 64%. It’s likely BTC dominance reclaims 64% in a very similar fashion to the reclaim of ~60%.”
Rekt Capital says Bitcoin may be on the verge of entering another price discovery phase after a lengthy consolidation period.
“Bitcoin price discovery roadmap: Bitcoin is trying to finalize its first price discovery correction to transition into its second price discovery uptrend.”
Bitcoin is trading for $93,961 at time of writing, down 1% in the last 24 hours.
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