- Altcoins breach resistance with a 2016-style setup, signaling potential entry into a new altseason.
- Bitcoin dominance drops to 58%, repeating past cycles that preceded major altcoin rallies.
- Ethereum nears all-time high as Binance Coin and Hyperliquid set new breakout records.
Altcoins are recording a breakout movement that resembles the 2016 pattern just before one of the largest alt-seasons ever. Current market structures indicate resistance levels are being breached after an extended consolidation, with analysts pointing to repeating technical formations across past cycles. This renewed momentum has placed altcoins back in focus.
Historical Market Patterns and Current Breakout
The chart tracking altcoin capitalization (TOTAL2) shows a strong upward move starting in 2016 that extended into early 2018. After this rally, the market corrected sharply and consolidated in a descending triangle until a breakout in 2020. Another peak formed in 2021, establishing a new all-time high before another correction began.
The recent structure shows higher lows after extended consolidation, and resistance levels have been breached. According to Javon Marks, “Altcoins are BREAKING RESISTANCE, similar to what it did in 2016 just before one of the largest Alt-Seasons EVER.” Analysts also point to repeating triangular consolidations followed by rallies, a pattern now aligning with the current breakout phase.
Ito Shimotsuma added, “Another altseason signal has flashed, and it’s much bigger than anything you have seen,” noting a rare Bitcoin dominance death cross. Historical comparisons show that similar setups in 2016 and 2021 were followed by strong parabolic rallies for altcoins.
Bitcoin Dominance and Current Altcoin Performance
Bitcoin dominance has fallen from 66% in June to just below 58%, marking the sharpest decline since mid-2022. According to CryptoELITES, past cycles show July 2017 and July 2021 peaks in dominance were followed by altcoin seasons.
The chart now shows July 2025 positioned at similar levels, with downward dominance movement aligning with previous cycle behavior. Altcoins have shown renewed strength this week. Binance Coin reached $1,000, and Hyperliquid hit a peak of $59.30.
Ethereum is now only 8% away from its all-time high, while XRP, Solana, and Tron follow closely behind. According to Colin Talks Crypto, the “Total3” chart, excluding stablecoins, is on the cusp of a breakout, supporting the current rally outlook.
