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The landscape of the crypto assets market is undergoing subtle changes. When Bitcoin's dominance ($BTCDOM) exceeds 61%, it is typically seen as a Bitcoin-dominant phase. When this indicator is between 61% and 55%, it indicates that Ether is dominating the market. If the indicator falls below 55%, it means that other alternative tokens are starting to dominate.
Currently, a death cross signal has appeared on the daily chart, indicating that a downtrend has been established. It is worth noting that if $BTCDOM falls to around 40%, it is often considered a signal that the bull market is about to peak. Historical data shows that in the final stages of a bull market, $BTCDOM typically can only maintain around 60% for about 2-3 weeks. The process of dropping from 60% to 40% may only take 4-6 weeks.
This pattern of rapid decline has appeared multiple times in past bull markets, such as from December 2017 to January 2018, and from April to May 2021. This phenomenon often signals that the altcoin market is about to experience a frenzied increase, but it also means that the market bubble may be about to burst.
Investors should closely monitor changes in this indicator, as it may herald significant shifts in the Crypto Assets market. However, it is also important to remember that market behavior is complex and variable, and one should not rely solely on a single indicator to make investment decisions.