Posted: November 18, 2024

• Bitcoin dominance drops to 60%, falling short of a $93,000 retest.
• Altcoins like Dogecoin, Ripple, and Bonk gain traction as Bitcoin stalls.

On 15th November, Bitcoin’s [BTC] dominance was on track to reach 65%, but a failure to retest the $93,000 mark has shifted the market’s focus.

With Bitcoin’s price stalling, altcoins – long overshadowed by BTC – are starting to gain momentum. The big question now is whether Bitcoin dominance will continue to decline as altcoins begin to rally.

Altcoins rise as Bitcoin dominance falters

Bitcoin’s dominance has fallen to 60% at press time, casting doubt on bullish predictions of a near-term $100,000 breakout. The RSI of 76 indicates Bitcoin is in an overbought zone, potentially signaling an upcoming correction.

Meanwhile, altcoins are gaining traction, as evidenced by a rise in the Altcoin Season Index from 33 to 39, with top performers like Ripple [XRP], Dogecoin [DOGE] and Bonk [BONK] driving market interest.

XRP, DOGE and BONK lead the charge

As Bitcoin’s dominance retreats to 60%, the altcoin market is witnessing a surge in momentum, indicating a potential shift toward an altcoin season.

Tokens like Dogecoin, XRP and Bonk have posted significant gains, as seen in the comparative performance chart.

Dogecoin has climbed over 114.5%, buoyed by increased trading volumes and renewed community enthusiasm. Ripple’s 100.6% rally reflects its sustained momentum post-legal clarity, positioning it as a top performer in the altcoin space.

Meanwhile, Bonk, a rising memecoin, has outpaced both with a 127.3% surge, showcasing the power of speculative assets in driving market interest.

This rally across popular memecoins suggests growing confidence in altcoins as Bitcoin faces possible correction risks.

If this trend persists, altcoin enthusiasts could see a full-fledged rally, echoing past cycles where Bitcoin corrections triggered a capital rotation into high-performing altcoins.

The role of fear and greed 

The Crypto Fear & Greed Index, currently at 83 (Extreme Greed), reflects heightened optimism in the market. Historically, such levels of extreme greed often precede corrections, as exuberant sentiment can lead to overbought conditions.

With Bitcoin’s RSI also suggesting potential overextension, the convergence of these signals indicates that the short-term price action might lean towards a pullback.

In this environment, altcoins could further benefit as traders rotate capital away from Bitcoin to seek gains in assets showing relative undervaluation.

Read Bitcoin [BTC] Price Prediction 2024-2025

If Bitcoin struggles to reclaim its dominance, the current market dynamic may fuel an early-stage altcoin season, setting the stage for broader diversification in crypto portfolios.

Navigating these market conditions will require a careful balance of optimism and caution, particularly for Bitcoin bulls anticipating a $100,000 breakout.