Bitcoin's Dominance Hits Key Resistance, Is Altcoin Season Approaching?
Recently, Bitcoin's dominance (BTC.D) unexpectedly rose and has now reached a historically strong resistance zone, hovering around 65.1%. This fluctuation has caught the attention of many analysts and traders, as key technical indicators and chart patterns may suggest that the long-awaited altcoin season of 2025 is approaching.
Over the past three years, Bitcoin's dominance has steadily climbed, showcasing its market influence. Analyst Gert van Lagen points out that the current surge in BTC.D is similar to bearish signals during the 2021 market cycle when capital flowed from Bitcoin to altcoins. Now, Bitcoin's dominance is once again approaching the HTF key resistance zone of 64%-76%.
The ascending wedge pattern formed in the chart often indicates market weakness, and a trend reversal may be imminent. Additionally, the RSI has failed to rise in sync, showing weakening momentum, which resembles the situation before the collapse of Bitcoin's dominance in 2021, when altcoins subsequently surged.
If history is any guide, the market may be on the brink of a turning point. Analyst Lagen believes that the actual top of Bitcoin's dominance can only be confirmed after the current upward trend is broken, at which point the market focus may shift to altcoins.
Analysts like Ijaz Awan also point out that Bitcoin's dominance is trying to break through the historical key resistance zone of 71.38%-73.06%, which has repeatedly become a turning point. Therefore, as Bitcoin's dominance approaches historical peaks, many analysts agree that the peak season for altcoins is likely just around the corner.
Lagen's view on the imminent arrival of altcoin season has also been endorsed by several well-known analysts. Crypto trader Karman Asghar's latest analysis indicates that Bitcoin's dominance chart has shown dangerous signals, with a double top pattern overlaying a bearish divergence in the RSI, a classic pattern that closely aligns with previous altcoin surges. Technical indicators suggest that 2025 may usher in a new wave of altcoin frenzy.
Although the bearish RSI divergence is not necessarily a triggering factor, combined with historical market behavior, it leads many to believe that the market may be on the edge of another significant altcoin season. Everyone is getting ready for the arrival of altcoin season!
What do you think about the next trend of Bitcoin's dominance? Do you believe the altcoin season will arrive as expected?
