- Bitcoin dominance holds at a fragile 58 percent as technical signals hint at an impending shift that may fuel selective altcoin strength.
- While charts resemble past altseasons, industry leaders argue weak fundamentals and lack of innovation limit the scale of potential rallies.
- Diverging views emerge as analysts anticipate Bitcoin weakness yet executives highlight stagnation and narrative-driven bursts for altcoins.
Bitcoin’s dominance is now sitting at a critical turning point, sparking debate across the crypto market. The chart shared by popular analyst Moustache on X highlights an ascending broadening wedge pattern that could soon collapse.
This setup, stretching from early 2024 to late 2025, shows Bitcoin’s share of the market struggling near key support. Traders now watch closely as dominance hovers around 58%, a level that could decide the next big shift.
According to Moustache, the structure resembles patterns seen before altcoin booms in 2017 and 2021. Bitcoin dominance recently peaked at nearly 65% before fading and forming a rounded top.
That exhaustion signal gave way to red candles and heavy selling. “This ascending broadening wedge pattern ($BTC Dominance) is just waiting to crash to the downside,” Moustache wrote. He suggests that a breakdown could trigger the long-anticipated altseason many traders still expect.
The Wedge Breakdown Risk
The wedge spans months of higher highs and higher lows, but recent declines have tested its lower boundary. Moreover, the inset diagram shared by Moustache shows a classic wedge resolution, where support eventually fails and dominance breaks lower.
Hence, if Bitcoin dominance collapses beneath this level, the measured target projects a deeper decline. Consequently, altcoins could reclaim market share if this technical outcome plays out.
Additionally, the chart highlights how repeated tests of both boundaries added weight to the pattern. Besides, the failure near 65% dominance confirmed resistance. Now, consolidation at the lower support zone leaves Bitcoin’s position vulnerable to further weakness.
Diverging Market Views
However, not everyone agrees that a broad altcoin rally will follow. Bitget COO Vugar Usi Zade argued at Token2049 that altseasons are fading. He emphasized that the market has shifted toward narrower, narrative-driven rallies instead of blanket surges.
“There haven’t been any technological advancements. We haven’t seen any big things coming out of projects,” Zade noted. He questioned why altcoins should rally without clear breakthroughs.
Hence, while technical charts signal possible altcoin strength, fundamental voices urge caution. The lack of new products or adoption milestones keeps uncertainty alive.
Bitcoin dominance sits at a make-or-break zone. If support fails, altcoins could surge, but fundamentals may not justify a full-scale altseason.
