- Bitcoin dominance hits 64.94%, nearing resistance, signaling a potential trend reversal.
- Analysts anticipate altcoin season if BTC dominance falls, mirroring 2020–2021 cycle trends.
- High ETF approval odds for altcoins like Solana and Litecoin could accelerate capital rotation.
The crypto market is now echoing patterns from 2020–2021. The cycle appears to be repeating: accumulation, breakout, and the possible arrival of a parabolic altcoin rally. Bitcoin dominance has climbed to a four-year high, yet technical setups suggest a reversal could be close. The coming months may be critical.
Bitcoin Dominance Tests Resistance As Analysts Forecast Reversal
According to data reviewed on May 2, Bitcoin dominance reached 64.94%, its highest level since January 2021. This increase follows a five-month uptrend, during which dominance rose over 13% since December 2024. Bitcoin’s strong price action, moving from $85,197 to a recent peak of $97,470, has fueled the trend.
However, the dominance chart is approaching a key resistance zone. The monthly Relative Strength Index for dominance now sits at 72.22, suggesting overbought conditions. During past cycles, similar levels triggered corrections. According to a chart shared by @el_crypto_prof, Bitcoin dominance is nearing the top of a two-year ascending broadening wedge, which often leads to a reversal.
Analysts Point to Altseason as Capital May Rotate to Altcoins
Several analysts suggest that the structure resembles the 2020–2021 cycle. Crypto Rover stated on X, “The stablecoin market cap is exploding. Bitcoin and altcoins will follow!” This view supports the idea of capital moving from Bitcoin into altcoins if dominance declines.
Michaël van de Poppe observed that the altcoin market cap has recently held a strong support level, with expectations of an upward move. Crypto Tamil also noted bearish divergence on the daily Bitcoin dominance chart. He argued that conditions are aligning for the beginning of an altcoin season.
ETF approval expectations are adding momentum. According to recent estimates, Solana and Litecoin ETFs have a 90% approval chance. This could lead to increased demand for altcoins. If dominance fails to break current resistance, traders are watching for capital rotation and altcoins to gain strength.
