Bitcoin Flexes Dominance While Altcoins Gasp for Air

Crypto's alpha asset surges as speculative tokens falter—same old story, just bigger numbers.

The king isn't dead: BTC's latest rally leaves ETH, SOL, and other 'next Bitcoin' wannabes eating dust. Market cycles change, but Bitcoin's gravity remains.

Altcoin roulette: Traders chasing 100x returns got 100% drawdowns instead. Who could've predicted that? (Spoiler: everyone with a 5-year chart.)

Wall Street's latest 'blockchain adoption' press releases can't hide the truth—when risk-off hits, crypto still means Bitcoin. The rest? Just leverage with extra steps.

$104,841 has seen continuous growth, while the altcoin market struggles to gain momentum. The share of altcoins in the total market capitalization is declining, prompting investors to reassess their strategies in light of increasing risks. David Bird, an investment expert, highlights that capital is not moving from Bitcoin to altcoins as it did in previous cycles, leading to a decline in “altcoin dominance.” Bird suggests that returns should be measured against Bitcoin rather than the US dollar. Technical indicators show critical levels being tested, hinting at potential new weaknesses for altcoins.

ContentsReasons Behind Declining Altcoin StrengthWhat Should Investors Do in Current Conditions?

Reasons Behind Declining Altcoin Strength

Bird recalls that the “zag zone,” which signaled a recovery for altcoins in January, was rejected in March. Since then, altcoin dominance has remained in a downward channel. According to Fibonacci analysis, failure to maintain above nine percent could see dominance drop to 5.5 percent. Such a scenario may lead to additional selling pressure for many altcoins and strengthen the tendency for market capital to return to the SAFE haven of Bitcoin.

The expert believes that choosing altcoins that do not significantly outperform bitcoin entails additional risks. According to him, capital flow data and volume profiles are consolidating in favor of Bitcoin, while short-term rumors circulating on social media can overshadow decision-making processes. Thus, adhering to indicators and interpreting structural signals in charts provide an advantage in uncertain environments.

What Should Investors Do in Current Conditions?

Bird warns that blindly believing in the four-year market cycles can be misleading. Cycles can either extend or contract, thus requiring flexible planning. Investors are urged to closely monitor primary indicators such as volume, dominance, and momentum and to possess at least basic technical analysis knowledge, which is considered crucial.

Known as ASX Trader, Bird is preparing to hold an interactive seminar in Gold Coast with fellow trainers Craig Tapping and Craig Dickson. The program will feature live market analysis, risk-return calculations, and practical strategy simulations. The event aims to equip investors with the knowledge needed to make informed decisions in complex market conditions. In the volatile crypto ecosystem, those who act based on information are more likely to succeed in the long term.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.