Bitcoin (BTC) continues its historic price trajectory, trading in the low $90,000 range at the time of writing. However, a trading firm suggests that Bitcoin dominance (BTC.D) falling below a crucial level could signal the start of the long-anticipated altcoin season.<\/p>\n
In a recent Telegram broadcast, Singapore-based trading firm QCP Capital shared<\/a> its crypto market analysis. The firm highlighted Solana\u2019s (SOL) recent performance, noting that it outpaced Bitcoin and Ethereum (ETH) over the weekend, surging more than 17% from Friday\u2019s lows.<\/p>\n Despite this, QCP Capital acknowledged that many investors remain hesitant to embrace the prospect of an imminent alt season, given Bitcoin\u2019s steady climb toward the psychologically significant $100,000 mark. Rekt Capital\u2019s analysis supports<\/a> this sentiment, suggesting BTC is just beginning its parabolic phase.<\/p>\n QCP Capital, however, predicted that a combination of Donald Trump\u2019s victory in the US presidential election and interest rate cuts by the Federal Reserve (Fed) could set the stage for a full-blown altcoin season in the coming months.<\/p>\n According to QCP Capital, altcoins historically outperform major cryptocurrencies once the latter consolidate after significant rallies. The firm explained:<\/p>\n Historically, we\u2019ve seen altcoins outperform whenever the majors consolidate after a significant rally as profits rotate into smaller-cap coins. BTC\u2019s dominance is around 60% now and it will probably need to be around <58% to signal the start of altcoin season.<\/p>\n Currently, BTC.D stands at 60.10%. A look at the weekly chart shows that Bitcoin dominance has been on a steady uptrend since November 2022, when it hovered at 39.92%. Over this two-year period, most altcoins have underperformed Bitcoin significantly.\u00a0<\/p>\n However, altcoins have recently shown signs of recovery, coinciding with the growing likelihood of a pro-crypto Trump administration. Digital assets like SOL, Cardano (ADA), and XRP have significantly outperformed BTC in the past few weeks.<\/p>\n QCP Capital\u2019s analysis aligns with that of crypto analyst @MikybullCrypto, who predicts BTC.D will decline starting in December. According to the analyst, altseason could begin toward the end of November and last until March 2025.\u00a0<\/p>\n Some analysts believe Bitcoin may continue its rally before showing signs of weakness. For instance, Fundstrat\u2019s head of research, Tom Lee, recently stated<\/a> that BTC is on track to reach $100,000 before the end of the year.<\/p>\nTrading Firm Identifies Key Bitcoin Dominance Threshold For Altseason<\/h2>\n