In a normal market cycle, there is a specific pattern in which the Bitcoin dominance behave: the dominance of Bitcoin increases when markets remains the influence of sellers (when markets show bearish nature); the BTC dominance continues the same behaviour when sellers start to challenge buyers in markets (when markets display the early sign of the beginning of bullish nature); and finally the Bitcoin dominance sharply falls when sellers takes the control of markets (when markets showcases bullish nature). Does the present crypto market cycle respect this traditional pattern? 

Current Market Behavior: A Break from Tradition?

Crypto researcher Flow recently highlighted a potential deviation from this traditional pattern. In his latest post on X, Flow questions why Bitcoin dominance hasn’t shown signs of weakening despite the end of a bearish phase. Historically, we would expect to see a decline in dominance as the market recovers. However, Bitcoin’s dominance remains strong, hovering around 54.3%—close to its yearly peak.

Bitcoin Dominance Analysis

As of today, the dominance of Bitcoin stands at around 54.3% – which is very close to the highest dominance marked this year. The highest dominance marked in the last twelve months is the dominance of 54.37% – recorded in mid-August, 2024. And, the lowest in the last 12 months is 46.35% – reported in early-September, 2023. In mid-January, the BTC dominance was just 47.6%. In mid-April, it climbed to 51.9%, and in late-July it reached 53.2%.  

Why Does The Current Crypto Cycle Behave Differently? Two Possibilities 

Flow in this post puts forth two possibilities to explain the deviation of the current cryptocurrency market cycle pattern from that of the traditional crypto market cycle pattern. His first theory is that what we see now is an atypical market cycle – a unique cycle which does not follow the traditional pattern. The second one is that the market is yet to witness the beginning of an actual bull run for the Bitcoin dominance to react. Both of these theories sound convincing.   

No Altcoin Season? What Crypto Investors Can Expect 

Flow warns against expecting a widespread altcoin season. Instead, he suggests that the next phase of the bull market will likely be led by a few major cryptocurrencies. While smaller altcoins might see some growth, the days of indiscriminate investing in altcoins are over. Investors should carefully assess the potential of their holdings rather than relying on a broad altcoin rally.

In conclusion, What the crypto researcher hints at is that gone are the days when investors blindly choose Altcoins, investing little to understand what their potentials are. In simple terms, even if the market sees the beginning of an Altcoin season, you cannot expect your cryptos to pump up your wealth unless you are holding something that has true potential.

Also Check Out: Bitcoin News: Is BTC Price About to Explode? 5 Shocking Predictions for the Next Surge!

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