Many of the altcoins are suffering huge losses, but Bitcoin (BTC) has remained remarkably stable amid volatility. The twist has caused concerns over changing trends in the cryptocurrency market. Altcoin investors are shifting profits towards Bitcoin, as anticipation builds upon the following stage of the BTC rise in value. This is propelling the dominance of BTC and altcoins are being Impacted.
Egrag highlighted that profit rotation is the main reason behind the price stability of BTC compared to the volatility of altcoins. With the rise and fall of altcoin prices, investors are getting progressively interested in Bitcoin as a reliable option.
The concept is to secure whatever gains they can as BTC approaches one last push. Most analysts believe that Bitcoin will touch the 21 Exponential Moving Average (EMA) on the 3-day chart which might propel its domination further.
Source: X
In the future, analysts propose that upon achieving this 21 EMA level, the price of BTC can suffer a fall. In case this occurs, capitals are bound to turn back into altcoins, allowing them an opportunity to recuperate. Such a rotation cycle will be able to kick off a mini altseason in 2025. Should the dominance of Bitcoin drop below the 48% level, then an even greater altseason may ensue, as altcoins very likely mount a huge market reversal.
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Bitcoin dominance is at a vital juncture of 21 EMA where the mark would be at approximately 63.35 percent. It will be a major turning point in the price action of BTC, and may indicate the trend of the subsequent stage of the market. With such a gathering, there is a possibility of a knock-on effect, and altcoins will experience appreciations following a decline in the power of BTC.
The effects of altcoins to BTC such as the process of rotating the altcoin profits with BTC involves market behavior that is typical of bullish markets. The investors are usually transferring their money to BTC, hoping that there will be the last price explosion.
Source: X
With BTC approaching its target, the reversal back to altcoins may lead to the resurgence of interest in the general crypto market. This is a repeating tendency that tends to result in outbursts in the case of BTC and altcoins.
The present situation is dictated by the growing prominence of BTC and the failure of altcoins. When BTC reaches over the 63.35% dominance level, there may be a high possibility of implementing an altseason. Any hints of rotation may be of great interest to investors this time because market rotations are an indicator that all things are changing in the cryptocurrency world.
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