In recent weeks, Bitcoin 
$78,084 has seen continuous growth, while the altcoin market struggles to gain momentum. The share of altcoins in the total market capitalization is declining, prompting investors to reassess their strategies in light of increasing risks. David Bird, an investment expert, highlights that capital is not moving from Bitcoin to altcoins as it did in previous cycles, leading to a decline in “altcoin dominance.” Bird suggests that returns should be measured against Bitcoin rather than the US dollar. Technical indicators show critical levels being tested, hinting at potential new weaknesses for altcoins.
Reasons Behind Declining Altcoin Strength
Bird recalls that the “zag zone,” which signaled a recovery for altcoins in January, was rejected in March. Since then, altcoin dominance has remained in a downward channel. According to Fibonacci analysis, failure to maintain above nine percent could see dominance drop to 5.5 percent. Such a scenario may lead to additional selling pressure for many altcoins and strengthen the tendency for market capital to return to the safe haven of Bitcoin.
The expert believes that choosing altcoins that do not significantly outperform Bitcoin entails additional risks. According to him, capital flow data and volume profiles are consolidating in favor of Bitcoin, while short-term rumors circulating on social media can overshadow decision-making processes. Thus, adhering to indicators and interpreting structural signals in charts provide an advantage in uncertain environments.
What Should Investors Do in Current Conditions?
Bird warns that blindly believing in the four-year market cycles can be misleading. Cycles can either extend or contract, thus requiring flexible planning. Investors are urged to closely monitor primary indicators such as volume, dominance, and momentum and to possess at least basic technical analysis knowledge, which is considered crucial.
Known as ASX Trader, Bird is preparing to hold an interactive seminar in Gold Coast with fellow trainers Craig Tapping and Craig Dickson. The program will feature live market analysis, risk-return calculations, and practical strategy simulations. The event aims to equip investors with the knowledge needed to make informed decisions in complex market conditions. In the volatile crypto ecosystem, those who act based on information are more likely to succeed in the long term.
