- Bitcoin dominance breaks key trendline support at 61.44%, opening the door for a potential altcoin rally driven by capital rotation.
- Whale accumulation continues despite recent selling pressure, signaling that a full market cycle top may not have formed just yet.
- Falling Bitcoin dominance and rising altcoin momentum suggest an incoming altcoin season as traders diversify their crypto holdings.
Bitcoin’s grip on the crypto market is weakening—and the shift may ignite a major altcoin rally. Over the last five trading sessions, Bitcoin has moved less than 2%, signaling a tight consolidation phase. This movement follows the Federal Reserve’s latest decision and fading bullish momentum across crypto assets.
Meanwhile, whales and miners continue to cash out, adding pressure. Despite strong long-term growth models, Bitcoin struggles to maintain consistent gains above its all-time highs.
Analyst Ted warns of a possible “fakeout pump” in Bitcoin dominance, currently sitting at 61.44%. His chart, which spans from 2022 to 2025, shows Bitcoin dominance steadily rising from 38% to over 65%. However, the latest data reveals a sharp decline, breaking below the upper channel. This technical breakdown marks a major turning point. If dominance falls below 59%, altcoins could rally fiercely as capital rotates out of Bitcoin.
Source: Ted
Whale Activity and Market Signals
Meanwhile, CryptoQuant analyst t0_god highlights a significant trend in whale accumulation. His chart displays Bitcoin’s price and large wallet activity from 2015 to 2025. Historically, market tops have coincided with heavy whale distribution. However, the current cycle shows ongoing accumulation, hinting that the bull market may not be over. If this trend reverses, Bitcoin could face a cycle top soon.
Additionally, this whale data aligns closely with previous bull cycles. Massive accumulation preceded Bitcoin’s 2021 surge, and a similar pattern repeated in 2024. As of now, accumulation remains steady, but sentiment remains cautious.
Source: CryptoQuant
Altcoin Season on the Horizon
Besides Bitcoin’s dominance breakdown, the shift toward altcoins appears to be gaining steam. Investors are watching closely. Altcoin seasons occur when Bitcoin’s dominance drops, allowing other assets to outperform. The current market setup could trigger one of the strongest altcoin rallies in recent years.
Moreover, the dominance breakdown adds to growing evidence of capital rotation. Many altcoins have started to gain ground. Consequently, short-term traders and long-term investors alike may benefit from repositioning their portfolios.
