Altcoins Surge as Bitcoin Dominance Stalls Amid Market Sentiment

Bitcoin's dominance has stalled at 60%, failing to reach expected highs, creating space for altcoins to surge. As Bitcoin's momentum falters, altcoins like Bonk (BONK) and Ripple (XRP) are gaining traction, signaling a potential altcoin season in the market.

On November 15, Bitcoin’s dominance appeared poised to rise to 65%, but its price failed to break the $93,000 mark, suggesting that the anticipated upward momentum could be faltering. This stagnation has opened up a window for altcoins, which have previously been lagging behind Bitcoin in market performance. As a result, altcoins are now seizing the opportunity to gain traction in the market.

Bitcoin's dominance has dropped to 60%, a surprising shift that defies analysts' expectations that Bitcoin’s price would surge to $100,000 in the short term. The fall in dominance coincides with the growing strength of altcoins.

Chart by TradingView

The Altcoin Season Index, which tracks the performance of altcoins relative to Bitcoin, has risen from 33 to 39 in recent days. This indicates that more altcoins, including notable tokens like Bonk (BONK) and Ripple (XRP), are outperforming Bitcoin, contributing to the shift in market focus.

The market sentiment is currently in "Extreme Greed," according to the Crypto Fear and Greed Index, which often signals that the market may be ripe for a correction. Investor enthusiasm can sometimes lead to overinflated valuations, creating conditions for a potential pullback.

Analyst Rekt Capital shares the view that Bitcoin’s declining dominance may pave the way for altcoins to break out. According to him, as Bitcoin dominance continues to fall, altcoins may find the momentum they need to surge ahead.

Altcoins Positioned for Further Growth

Meanwhile, the total market cap of the top 125 altcoins ( TOTAL2) has reached $1.19 trillion, a level not seen since June. This significant uptick in altcoin market cap is attributed to increased investor interest and a breakout from a previously bearish descending triangle pattern. If the trend continues, the altcoin season could fully materialize, but for this to happen, Bitcoin’s dominance needs to continue declining, and the Altcoin Season Index must move closer to 75, signaling even more outperformance from altcoins.

Bottom Line: If these conditions hold, the total market cap of altcoins could rise to $1.27 trillion.