Altcoin Season Index sits at 50%, nearing the 75% threshold for confirming an altseason.
Bitcoin dominance fell from 64.5% to 60.9% in five days, showing weakening market control.
TOTAL2 market cap surged 30% to $1.49T as altcoins reclaim an eight-year trendline.
Bitcoin dominance is showing early signs of reversal, as momentum shifts toward the altcoin market. Multiple technical indicators, along with recent market behavior, suggest that altcoins may soon outperform Bitcoin. Analysts are watching closely as several trendlines and indicators signal a potential breakout for the broader altcoin sector.
Bitcoin Dominance Faces Resistance While Altcoin Momentum Builds
Bitcoin dominance has fallen sharply from 64.5% to 60.9% in five days, marking its lowest level in four and a half months. The chart shows two bearish engulfing candles near the 68% mark, each followed by a steep decline below 56%.
https://twitter.com/Washigorira/status/1946906105746972735
A descending trendline connects rejections in mid-2021 and mid-2025, suggesting a long-term downtrend in BTC dominance. The MACD indicator also shows a potential bearish cross forming, similar to the pattern seen in 2021. At that time, altcoins gained market share rapidly as Bitcoin dominance fell.
Ethereum’s recent 27% rally has contributed to this decline, signaling growing investor preference for altcoins. Despite Bitcoin’s dominance falling, its price remains stable above $110,000, indicating capital rotation rather than a sell-off.
Key Altcoin Indicators Approach Breakout Levels
According to an observation by BlockchainCenter, the Altcoin Season Index is now near its midpoint. An altseason is confirmed when 75% of the top 50 non-stablecoin altcoins outperform Bitcoin over 90 days. Currently, that number stands at 50%, suggesting room for further growth.
The TOTAL2 index, which excludes Bitcoin, recently reclaimed an eight-year trendline. This move coincided with a 30% jump in total altcoin market cap to $1.49 trillion. Analyst Merlijn The Trader noted a bullish crossover in Glassnode’s altseason indicator, where the 7-day average moved above the 30-day average.
This setup previously marked altcoin rallies in late 2024 and early 2025. As momentum builds and traders rotate funds, analysts say altcoins are positioned to gain further strength if current trends continue.
The post Altcoin Season Nears as Bitcoin Dominance Drops Below 61% With Bearish Signals Emerging appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
