With Bitcoin price sliding below a key psychological level, market participants have started to rethink their bullish views. A close look at the dominance chart reveals that things have stayed the same for altcoins.

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Simply put, alt season is when the profits from Bitcoin, Ethereum and/or new capital, flow into altcoins. As a result of this redirection, the dominance of Bitcoin, aka its market share, suffers a decline. Likewise, the altcoin market share increases, giving rise to a phase known as alt season.

Comparing Bitcoin and altcoin dominance helps in forecasting alt season. The chart attached below shows that BTC dominance is facing a hurdle while altcoin dominance is at a support floor.

A bounce off this level seems likely, giving rise to an alt season.

BTC vs. Altcoin dominance chart

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The long-term outlook for Bitcoin price is already facing resistance and selling pressure as it enters the weekly bearish breaker. This breaker setup extends from $29,247 to $41,273, with an inefficiency at roughly the midpoint, stretching from $34,277 to $37,406.

Although BTC has shown incredible performance since the start of 2023, it could continue heading higher, considering the macroeconomic outlook. However, if investors continue to book profits, a retracement to key support levels is likely. If the downtrend does continue, the $25,205 and $24,300 levels are critical for absorbing the selling pressure.

These levels also serve as an accumulation zone.

BTC/USDT 1-week chart

Should this move to $24,000 occur quickly and with a massive surge in volatility, the alt season could pause. In such a case, altcoins will try to fight the bearish momentum but could eventually slide lower. Only the strong altcoins could survive and even fewer tokens might rally.

Also read:Bitcoin Price Forecast: Can BTC bears manifest a 30% crash?

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Is the alt season in jeopardy as Bitcoin slides below $30,000? - FXStreet