As we approach what could be the final leg of this bull market, Bitcoin Dominance ( BTC.D) is set to become a critical indicator. Historically, a peak in BTC dominance has often preceded liquidity spillovers into the broader crypto market, igniting a wave of speculative fervor across altcoins. This time, as BTC dominance nears pivotal levels, we may be entering a similar phase, marked by heightened volatility and shifting market dynamics.
The chart suggests that BTC dominance could soon experience a reversal, signaling the start of widespread capital rotation within the crypto space. Observing BTC dominance during this period will provide early clues about market sentiment, helping investors to time entry and exit points with precision.
I’ll be closely monitoring this metric and will provide timely updates as we approach potential inflection points. This shift could begin within the next 1-6 weeks.