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▲ Bitcoin (BTC)
The rare formation of a dead cross in the Bitcoin (BTC) dominance index is imminent, raising the possibility of an altcoin upturn, centered around Ethereum (ETH).
BeInCrypto reported on May 2nd, "Bitcoin dominance is nearing a monthly dead cross," analyzing this signal as a rare pattern that has historically occurred only twice. A dead cross is a structure where the long-term moving average falls below the short-term moving average, interpreted as a transition signal indicating a weakening of Bitcoin's market share and a shift of funds to altcoins.
If this structure is completed, it is analyzed that a typical 'altcoin season' flow could emerge, with Ethereum's rise and Bitcoin's dominance decline occurring simultaneously.
Ethereum is currently trading around $2,300, consolidating within an ascending channel. The key turning point is whether it recovers the channel's midline; if it breaks through, it could open up a roughly 50% upside potential to $3,430, after overcoming the $2,750 resistance.
Conversely, on the downside, the $2,050 area was mentioned as a major support level. This area is where trading volume is concentrated, and it is considered a key price zone where buying interest flows in during a decline.
Technical signals are mixed. While Ethereum maintains its ascending channel, a decline in the Relative Strength Index and a break from the trendline have occurred simultaneously, confirming short-term bearish signals.
Bitcoin dominance is currently facing resistance around 60%. If it breaks above 61%, further upside could lead to continued weakness in altcoins, but conversely, if it retreats from resistance, it could fall to the 49% level, potentially accelerating the shift of funds.
With a structure forming where Bitcoin dominance and Ethereum's price movement are intertwined, the market has entered a critical phase that will determine the rotation of altcoins.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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