- Bitcoin dominance has dropped to 52%, creating favorable conditions for altcoin market growth.
- Ethereum and major altcoins post strong weekly gains, breaking above key long-term technical levels.
- Altcoin deposits and market activity surge, with the Altcoin Season Index rising from 26 to 37.
The wait is over for crypto traders as altcoins show strong breakouts after months of consolidation. Bitcoin dominance is falling, and multiple major assets are outperforming Bitcoin. Price action across the market suggests growing capital inflows into alternative cryptocurrencies.
Bitcoin Dominance Falls as Traders Eye Altcoin Breakouts
According to Captain Faibik, altcoins are waking up from their long nap, breaking resistances, and printing massive green candles. He observed that the BTC dominance chart has shown consistent upward movement since mid-2022 and rebounded from a 40% base through 2023. However, a recent decline marks a potential shift in market structure.
BTC dominance peaked above 55% in mid-2024 before entering a multi-week drop toward 52%, testing long-term ascending trendline support. This movement suggests Bitcoin’s share of the crypto market has been decreasing in recent weeks, creating conditions that often favor altcoin rallies.
Market capitalization from CoinGecko records the total value of digital assets at $3.92 trillion. Ethereum, Solana, and other large-cap altcoins have broken above their 200-day moving averages, a technical signal that traders often view as bullish.
Ethereum and Large-Cap Altcoins Drive Gains
Ethereum has gained 9% in the past week, trading near $3,937, while XRP is up 6% to $3.22. Cardano has risen 9.6%, and Stellar 11%. Ethereum dominance has climbed to 11.9%, supported by rising on-chain activity and increased trading volumes.
CoinMarketCap data shows altcoin deposits on major exchanges have reached a one-year high, with over 45,000 recorded in a single week. The Altcoin Season Index, as tracked by independent analysts, has advanced from 26 to 37 within a month, reflecting a growing preference for altcoins over Bitcoin.
Collins Talks Crypto observed that BTC.D has broken down from a channel and failed to reclaim it, unlike previous cycles. Analysts note that a drop below the 60% dominance threshold could accelerate altcoin rallies while Bitcoin maintains its own upward movement.
