Bitcoin’s dominance rate – the crypto market leader’s share of the total crypto market – breached the two-year long ascending trendline last month and has dropped to 62.61% today to hit the lowest level since July 2019.
The slide in the dominance rate also indicates the altcoins are gaining ground.
Popular trader Scott Melker is right in stating that altcoin season is here. Melker is expecting altcoins to outperform the top cryptocurrency.
Bitcoin is already lagging big time. For example, Ether, Bitcoin Cash and few other coins are up over 100 percent since the start of the year. Meanwhile, bitcoin is up over 40 percent.
In fact, bitcoin’s dominance rate is now extremely oversold, according to the daily RSI, which is hovering at 13.8, its lowest level since May 2016.
Dominance rate D1 chart
With the dominance rate looking overstretched to the downside, altcoins could be in the for a bull breather or minor correction.