Bitcoin Dominance Surge: Altcoin Rally's End in Sight?

The crypto market has been volatile recently, with the broader market capitalization dropping from $3.73 trillion to $3.23 trillion since mid-December. Altcoins have taken a significant hit, while Bitcoin has remained relatively stable. Market activity has not slowed, with trading volume dropping by 32.39% to $120.09 billion and Bitcoin dominance hitting 60.30%.

Analysts are divided on the outlook for the crypto market. Rekt Capital, a crypto analyst, noted that the current market movement of Bitcoin Dominance does not follow historical trends. When Bitcoin Dominance rises, it suggests altcoin movements halt or slow, and vice versa. However, the recent shift in market activities, with BTC Dominance gaining over 6%, suggests that investment has been channeled back towards Bitcoin, indicating the end of the rally for altcoins.

Glassnode's percent of supply in profit, used to measure the profitability of altcoins using a basket of 29 altcoins, shows that only 32% of these altcoins are in profit. However, there's a possibility for the other altcoins to turn bullish if the bottom trendline indicated on the chart is respected, which could extend to the overall market. Another bullish indicator is the ETH/BTC chart, which recently reacted off a support level, suggesting that liquidity could flow into altcoins.

Crypto trader Justin Bennett warns that the crypto market may not be done correcting based on one key metric. He notes that the Tether dominance chart (USDT.D) is flashing bearish for Bitcoin (BTC) and other digital assets. Bennett is not making any bold calls yet, as the break from USDT.D could fail. However, he advises caution in the crypto market until Tether dominance drops back inside the range on the high time frames, specifically back below the 4.37% level.

Bennett predicts that Ethereum (ETH) will chop around in the near term after reclaiming $2,600 as support. He expects sideways chop for now, but bulls are not out of the woods yet. Bennett also suggests that Bitcoin may revisit a range low of $91,787, as the bounce from Monday's range lows was not a great look with Tuesday's session closing below the $