Altseason in Jeopardy? Strategist Shares 3 Reasons the Bitcoin Dominance Will Rebound to Higher Levels

The altseason could be in jeopardy as three pointers suggest the Bitcoin dominance would rebound and target greater heights, driven by how $BTC reacts to current price levels.

Bitcoin’s share of the cryptocurrency market has experienced a notable correction since the start of July. With Ethereum gaining red-hot form, which sparked an over 100% increase in two months to a new all-time high in August, $BTC dominance has dropped from 65.58% to 58.15% at the time of writing.

Yet for prominent analyst Benjamin Cowen, the scenario would likely reverse. He shared in an August 31 tweet that Bitcoin dominance would most probably find a low soon and rebound extensively, with three possible Bitcoin price outcomes historically backing this narrative.

Meanwhile, the second price development would see Bitcoin drop below the 20W SMA, similar to an occurrence in the third quarter of 2024 and the first quarter of 2025. An accompanying chart highlighted this scenario, as $BTC dropped to below the 20W for most of July and September 2024. It reached the 50W MA with a drop to $49,217 in August 2024 and $52,600 in September 2024.

The analyst shared that this price development will see altcoins capitulate. Currently, the 50-week SMA stands at $95,860, which is an 11% drop from the current market price. If this does happen, he asserts that altcoins would record an over 30% price retracement.

Altcoins to Bleed if Bitcoin Consolidates at 20W SMA

Finally, Cowen shared the last development. Here, he noted that if $BTC consolidates around the 20-week SMA throughout September, as it did in 2022, then altcoins will likely slowly bleed.

As a result, the analyst concluded that regardless of the direction of Bitcoin, its market share will likely rebound from recent lows to higher levels. According to him, the crypto market may be resuming its final rotation into Bitcoin during this bull cycle.

Remarkably, this might pause the much-anticipated altcoin season, as a $BTC dominance growth does not historically go hand in hand with an altcoin price explosion. The prospect of this bullish altcoin phase gained momentum when analysts highlighted last week that the $BTC dominance had broken below a 2-year trendline.

How Bitcoin and its dominance react in the coming days will determine whether altcoins will sustain their current outperformance or yield to the crypto leader’s preeminence.