BTC jumped over 6% in the past 24 hours, reclaiming the $31,000 level.
But while BTC has somewhat held its ground, most other altcoins, barring Ethereum, have seen a drastic drop in value.
As seen in July, high BTC dominance usually comes just before a strong rally.
High BTC dominance usually indicates that the altcoin market is undervalued, attracting investors into the space.
Dominance is currently rising alongside alts, which is positive as it indicates they likely still have room to run.
But analysts warn that this could be another bull trap, given that the token has struggled to clear the $32,000 level for over a month.