The technical analysis of the BTC.D chart is pointing towards a point in balance this could lead to a collapse of Bitcoin’s dominance over the crypto market cap.
Analysts at The latest outlook came from crypto analyst Cryptoinsightuk, who highlighted the current state of the weekly Bollinger Bands indicator on the BTC.D chart as a reason why BTC dominance is on the verge of a massive crash.
2017 Style Flash Bollinger Bands Weekly Setup
According to CryptoInsightsuk, the current squeeze and positioning of Bollinger Bands resemble the conditions observed in March 2017, a period that preceded a rapid decline in Bitcoin dominance and the start of a powerful altcoin rally season.
The weekly candlestick chart shows Bitcoin dominance approaching the mid-to-upper region of the Bollinger Band, around 59%, with the bands now tightening. In previous cycles, particularly in 2017, a similar band structure led to a high-speed crash that pushed BTC dominance down for several weeks. This is visible in the gray area labeled “Previous ALT Season Start Point” in the graph below.
According to the analyst, this tightening of the Bollinger bands should lead to a decline that would push BTC dominance to 30%. This is highlighted in the chart below as a target range of between 30% and 35%, with an intermediate level of 33.5%.
Liquidity Rotation and Altcoin Effect
Another crypto analyst known as Bird responded to the analysis with a note that the charts indicate a violent decline in Bitcoin dominance. As the analyst noted, violent downward moves in BTC.D have always coincided with an aggressive liquidity rotation into altcoins. A rapid decline in Bitcoin’s market share is due to more capital flowing into the altcoin market than into BTC.
According to the analyst, once dominance breaks convincingly, major cryptocurrencies such as Ethereum and XRP will start to gain significant market share. Bird specifically noted that XRP could be positioned for a strong move through March and beyond, citing ongoing infrastructure reasons. development linked to the Ripple ecosystem.
That said, predictions of an accident in BTC dominance is not new. Market players anticipated the start of a large-scale altcoin season for several months. However, Bitcoin dominance remained stableeven during periods of falling prices. Indeed, periods of Bitcoin outflows have always led to corresponding outflows of other cryptocurrencies.
At the time of writing, Bitcoin is currently at 57.7%, down 1.34% in the last 24 hours. A breakout above the previous alt-season start zone in the 60% range could invalidate the bearish thesis and extend Bitcoin’s control into 2026.
Featured image from Pixabay, chart from Tradingview.com
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