Bitcoin Dominance Signals top as Banana Zone phase nears

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  Bitcoin dominance reached 66% on May 8, triggering DeMark daily, weekly and monthly top signals.
  
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  CoinGlass data indicates that altcoin futures volumes and funding rates are increasing, suggesting a capital shift away from Bitcoin.
  
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  The Ethereum price increased by 9.1% in a week, while the altcoin season indicator moved above 50, indicating an increasing altcoin strength.
  

Bitcoin (BTC), which is up 4.75% per day and above $100,000, continues to hold strong above $102,800. Its market dominance also meets key resistance near the 65% mark.

Raoul Pal, an investor, says that multiple DeMark indicators — weekly, daily, and monthly — show top patterns now. These technical indicators can be used to identify the exhaustion of market trends.

Raoul Pal: DeMark Indicators show Bitcoin dominance at its peak.

The current dominance level is lower than the peak of 2021 and even lower than the high of 2017.

This pattern of lower highs may signal a turning-point. Market analysts see this as an early indication that capital could be moving from Bitcoin to altcoins.

Banana Zone Speculation Returns with Altcoin Interest Growing

The term “Banana Zone”, refers to a time period when altcoins make rapid gains, while Bitcoin stagnates or consolidates. Altcoins could enter this phase of rapid growth if Bitcoin dominance continues its decline. Raoul Pal said that this would be similar to previous Banana Zone cycles where BTC’s relative dominance weakened as altcoins exploded in value.

Altcoin market capitalization is still suppressed. On-chain signals and increasing volumes suggest traders are positioning themselves for the next phase. The Bitcoin dominance graph shows declining momentum which often leads to better performance for other digital currencies.

Bitcoin Price Holds at $100K+ but Dominance faces technical headwinds

Bitcoin’s price is now holding strong at $102,800. This confirms its recent break over the psychologically important $100,000 level. The rise in dominance was synchronized with Bitcoin’s major rally since $60,000. This latest technical setup suggests a pause in the dominance strength, even if the price continues to reach new highs.

Altcoins such as Ethereum and Solana are also gaining traction. Ethereum’s recent gains have brought it above $5,000 for the very first time since March. Market watchers expect a stronger push by alternative cryptocurrencies in the event that BTC dominance continues to decline.

What’s Next? What’s Next?

Altcoins may lead the market if Bitcoin dominance confirms the top. Data from platforms such as CoinGlass show an increase in altcoin funding rates and futures volume — often a sign of a change in market interest. Altcoin Season Index is also moving upwards, reflecting increased speculation outside of Bitcoin.

The coming days will be critical in determining whether this technical setup is the official start of an altcoin-driven rally.

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