- Bitcoin dominance is stuck near 64% resistance and a pullback could trigger a strong altcoin rally as capital rotates.
- Altcoin market caps show bullish signals with golden crosses, hinting at a potential multi-month surge if history repeats.
- Analysts warn that failing to break above the key level could open the door for explosive gains in undervalued altcoins.
Bitcoin’s market dominance now sits at 61.3%, sparking intense debate about its next direction. Analysts warn that dominance remains near major resistance levels between 62% and 64%. A sustained rejection could trigger a broad altcoin rally. Crypto markets have historically rotated capital into altcoins when Bitcoin loses market share.
Source: Cryptoes
Besides, dominance has gained over 23 percentage points since mid-2024. It climbed steadily as Bitcoin outperformed most altcoins. However, current levels align with prior resistance zones that previously capped upside moves. Additionally, a downward arrow on technical charts suggests a potential pullback is forming. Investors believe that if dominance falls below this barrier, altcoins could finally rally after months of lagging.
Bearish Technical Signal Emerges
CrypFlow highlighted that Bitcoin dominance may print its first three-week MACD bearish cross since January 2020. This indicator previously foreshadowed a sharp drop in dominance. Moreover, the last bearish cross triggered a 105-day altcoin season that delivered explosive gains across smaller tokens. Hence, market participants are now drawing parallels to that cycle.
Source: CrypFlow
Additionally, altcoin market cap indices TOTAL2 and TOTAL3 have just formed golden crosses, further hinting at capital rotation. These crosses usually mark the start of bullish momentum. If history repeats, a fresh altseason could last through October. Traders now expect higher volatility in both Bitcoin and altcoins during this period.
Altcoin Market Eyes Breakout
Bitcoin dominance has tested the upper boundary of its long-term rising channel. This boundary, near 64%, dates back to December 2020. Therefore, failure to break above it could favor altcoins. Several analysts see early signs of an altcoin breakout as capital shifts away from Bitcoin.
Moreover, investors believe this scenario could strengthen if Bitcoin consolidates or corrects. Besides, the altcoin market has lagged behind Bitcoin for most of 2025. Hence, many undervalued projects may now attract fresh inflows.
