- BTC.D reaches the long-term resistance having two huge red candles, which indicates that the downward trend can make investors shift to altcoins in search of growth.
- Trends in history indicate that BTC dominance usually goes down before altcoin market power because capital flows in and out and people are interested in Ethereum and other assets again.
- Whale activity includes a $46.5 million Ethereum purchase, signaling institutional interest in altcoins alongside BTC dominance rolling over.
Bitcoin dominance ($BTC.D) is showing strong signals of a structural shift as two consecutive monthly red candles appeared on the 1M chart. Analysts observe that the trend may accelerate downward, creating potential opportunities for altcoins.
BTC Dominance Faces Long-Term Resistance
The BTC Dominance 1M chart shows that Bitcoin has been trading within a long-term descending resistance trendline since 2017. Each previous test of this trendline triggered sharp rejections, forming a series of lower highs. The latest rejection near the 65% level follows this historical pattern, marking a continuation of the downtrend.
CryptoBullet noted, “Two fat red monthly candles indicate a clear trend change. $BTC.D is about to accelerate to the downside.” The statement emphasizes the strength of the recent monthly moves and their potential effects on market structure.
Historical data indicates that BTC dominance often peaks at long-term resistance before a downward shift. With the latest two monthly candles being strongly bearish, analysts suggest a continuation toward lower dominance levels.
Potential Altcoin Rotation
As BTC.D shows signs of decline, capital may rotate from Bitcoin into altcoins. The expected movement could begin targeting mid-level zones of 54.55%, 51.20%, and possibly 48%, before testing the long-term rising support trendline near 43%.
Bitcoinsensus commented on X, “Altcoin season coming? Bitcoin dominance just started rolling over. ETH/BTC bouncing hard off macro support.” Historical patterns show that similar setups have preceded strong altcoin performance relative to Bitcoin.
This shift in dominance could support increased liquidity in altcoins.According to analysts, BTC declining periods are associated with faster altcoin expansion, indicating investor diversification out of Bitcoin.
Whale Activity and Market Signals
Market activity also reflects potential rotation as large-scale investors adjust positions. Ted reported a recent whale purchase, noting a $46,500,000 acquisition of Ethereum. Such moves can provide early signals of changing market trends.
Whale accumulation in Ethereum could align with the declining Bitcoin dominance trend. Large investors strategically reallocating capital may indicate confidence in altcoins outperforming Bitcoin during this phase.
All these are indicators that the market is in a structural change. As per observers, the BTC dominance could further decrease as altcoins experience growth, which is a significant milestone to traders and investors.
