BTC/ETH ratio was rejected at the 120–125% resistance, a zone that previously marked the start of capital rotation into altcoins.
BTC dominance tapped its historical 65%–70% supply zone before rolling over, aligning with prior setups that led to strong altcoin rallies.
Technical patterns suggest synchronized rejections on BTC/ETH and BTC.D may again fuel rapid gains across the altcoin market, echoing past cycles.
Altcoin season may be returning, as historical signals reappear on the BTC/ETH ratio and Bitcoin dominance charts. Market structure is shifting, and the technical indicators are confirming this rotation.
BTC/ETH Ratio Rejected at Key Supply Zone
According to market analyst Merlijn The Trader, the BTC/ETH ratio has faced another rejection at the historical resistance area between 120% and 125%. This zone has consistently acted as a ceiling during past cycles, often leading to capital rotation from Bitcoin into Ethereum and other altcoins.
https://twitter.com/MerlijnTrader/status/1951644161590849591
The latest rejection mirrors earlier setups that preceded sharp altcoin rallies. In those instances, ETH and other altcoins posted returns between 2x and 10x in a matter of weeks. The technical context and timing of this move are aligning once again, setting the stage for a possible altseason.
This development suggests Bitcoin’s relative strength over Ethereum is waning, which historically has paved the way for a strong altcoin market performance.
BTC Dominance Rolls Over at Longstanding Resistance
Supporting this view, Bitcoin Dominance (BTC.D) has also tapped into a multi-year resistance range between 65% and 70%. After a prolonged uptrend, BTC.D appears to be rolling over from this supply zone.
As Merlijn notes, such a pullback often signals the beginning of liquidity rotation into the broader altcoin market. Past market cycles have shown that simultaneous rejections on BTC/ETH and BTC.D usually lead to rapid altcoin expansion.
The setup appears to be repeating itself. Technical signals across multiple charts are confirming this ongoing structural shift in liquidity, which has previously been the spark for major altcoin rallies.
Liquidity Rotation Signals Altcoin Market Strength
Merlijn emphasizes that this is not speculation but rather a historical pattern backed by chart evidence. The simultaneous rejection of BTC/ETH and BTC.D has, in previous cycles, preceded strong altcoin momentum.
Green arrows marked “Altcoin Season” on the charts support this observation, showing past instances of similar technical setups. According to the tweet, these conditions led to swift and substantial gains across the altcoin market.
With technical confirmation from both BTC/ETH and BTC.D, the market may now be entering another phase of accelerated capital rotation into altcoins.
