- Bitcoin dominance broke a rising trendline, signaling capital rotation into altcoins, historically triggering sharp rallies across large, mid, and small-cap coins.
- Altcoin season momentum has accelerated as BTC consolidates, with indexes reaching levels that often precede full-scale altcoin market surges.
- Market signals show liquidity flowing from Bitcoin into altcoins, indicating immediate opportunities for investors to capitalize on historically proven rotation patterns.
Altcoin season is gaining momentum as Bitcoin dominance (BTC.D) falls below critical support levels. This shift suggests liquidity is rotating into altcoins. Historical patterns show altcoins often rally sharply when BTC dominance retreats.
Bitcoin Dominance Breakdown Signals Shift
Bitcoin dominance has been in a steady uptrend for nearly two years, rising from below 40% to over 64%. A clean rising trendline supported this dominance, acting as a reference for market behavior. Recently, BTC.D broke below this trendline, signaling a confirmed breakdown.
Merlijn The Trader shared on Twitter, “ALTCOIN SEASON SIGNAL JUST FIRED $BTC.D cracked below support. Rotation is no longer coming. It’s here.” This tweet emphasizes the importance of the trendline break in signaling altcoin potential. The market historically responds to such shifts by directing capital from Bitcoin to altcoins.
The recent breakdown may indicate BTC.D could move lower, potentially returning to the mid-40% range. This movement often correlates with waves of altcoin rallies, first affecting large-cap coins, followed by mid-cap and smaller tokens.
Capital Rotation Into Altcoins
When Bitcoin dominance decreases, investors typically redirect funds into altcoins. This rotation is reflected in increasing altcoin trading volumes and upward price momentum. The breakdown in BTC.D represents a moment where altcoins historically outperform Bitcoin.
According to Merlijn The Trader, “History is crystal clear: When Bitcoin steps back, alts go vertical.” Traders observing this pattern often adjust positions, shifting assets into promising altcoins. This behavior amplifies market cycles and can trigger rapid price movements across multiple altcoins.
The index measuring altcoin season momentum recently hit 61, approaching the 75 mark that signals full altseason. This progression suggests increased market activity and growing interest in altcoins. Investors tracking these signals are better positioned to respond to emerging trends.
Altcoin Season Momentum Building
With Bitcoin consolidating after a major cycle, liquidity is flowing into altcoins, creating favorable conditions for price surges. The rotation is already underway, according coinmarketcap data .
The breakdown in BTC.D provides a green light for altcoins, with historical data showing substantial gains during similar periods. Large-cap altcoins often lead the initial rally, followed by mid-cap and small-cap tokens as momentum grows.
Merlijn The Trader notes, “The setup is crystal clear: altcoins are primed to go vertical.” The message emphasizes that the market environment is conducive to altcoin growth. Traders closely monitoring BTC.D trends may benefit from recognizing the timing of these movements.
