Bitcoin Dominance? MATIC, AVAX and KLAY Outperformed BTC This Week

Key Takeaways

• Bitcoin dominance peaked at 57.7% in August 2024.
• An scending triangle pattern signals potential peak in Bitcoin’s dominance.
• Altcoins show bullish trends, indicating a possible upcoming altcoin season.

Bitcoin’s market dominance has been rising, reaching its highest level since April 2021, fueled by a downturn in the broader cryptocurrency market. However, this momentum has slowed, and signs suggest that Bitcoin’s dominance may be nearing its peak while altcoins are starting to show more robust performance, potentially signaling the onset of a new altcoin season.

Bitcoin’s Dominance 

Bitcoin’s market dominance has steadily increased from a low of 39% in November last year, peaking at 57.7% on Aug. 7, 2024—its highest level since April 2021, driven by a significant downturn in the broader cryptocurrency market.

However, this upward momentum has slowed since January, forming an ascending triangle pattern, typically signaling the final phase of an uptrend. Much like a rising wedge, this pattern suggests Bitcoin’s dominance could be nearing its peak as it completes a five-wave advance.

Bitcoin Season or Altcoin Season?

Bitcoin showed signs of struggle as it reached the triangle resistance, decreasing to 56.6%. The altcoin index shows that are in BTC season, with the altcoin season index at 24, up from a low of 20 on Aug. 18.

The last altcoin season began on October 16, 2023, peaking at 75 in January this year. Therefore, the recent uptick in this metric suggests a favorable period for altcoins could be approaching.

Bitcoin Outperformers

The table below highlights three cryptocurrencies from the top 100 that have outperformed Bitcoin over the past seven days. The seven-day percentage change relative to BTC is prioritized to show price changes against Bitcoin’s USD value fluctuation. For comparison, the price change in USD is also included.

The cryptocurrencies are listed in order from the biggest winner based on the seven-day percentage difference. MATIC is the top performer, with a 26.72% increase compared to BTC, followed by KLAY at 25.95% and AVAX in last place with a 25% increase.

The comparison chart shows that these three cryptos share a similar pattern. We saw an upturn after a prolonged period of declining price action from mid-March to Aug. 5. MATIC, AVAX, and KLAY prices increased by over 30% in the past seven days, leading to a breakout above the descending resistance line. 

This could have signaled a new bullish phase as the prices reached oversold conditions. 

Bitcoin’s Uptrend Could Be About To Finish 

Bitcoin’s dominance indicates that its uptrend may be nearing completion, while the altcoin season index remains in a low range, which typically signals the onset of an altcoin season. This is because, since Aug. 5, selected altcoins have outperformed BTC, displaying bullish trends. 

This positive momentum could persist into the coming week, with more altcoins potentially gaining market share and initiating an altcoin season later in September. 

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

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