Bitcoin dominance lost strong support after failing to stay above key trendline formed in late 2024.
The sharp break below 64 percent now points to strong investor movement into non-Bitcoin assets.
Community engagement confirms traders are focused on altcoins after BTC share dropped 3 points fast.
Bitcoin dominance has broken down from a long-standing ascending wedge pattern, triggering market-wide speculation that altcoin season is now underway. This development was revealed in a chart shared by crypto analyst Anup Dhungana (@CryptoAnup) on May 12, 2025. The analysis, supported by a daily timeframe chart from TradingView, shows Bitcoin’s dominance dropping sharply below key trendline support, settling at 63.11%.
Source: X
A tweet from May 9 predicted this shift, stating altcoins would "go parabolic" once Bitcoin dominance dropped from the rising wedge. That forecast has materialized, reinforcing trader sentiment and setting the stage for potential explosive growth across alternative digital assets.
Chart Breakdown Confirms Pattern Shift
The posted chart features a clear ascending wedge pattern, forming over several months between late 2024 and early May 2025. This technical structure is widely considered a bearish signal, often leading to downside moves upon a breakout.
The upper boundary of the wedge peaked around the 65.8% mark, while the lower trendline showed consistent support until the recent breakdown. After testing the upper resistance zone multiple times, Bitcoin dominance sharply reversed and fell beneath the lower support zone.
As of May 12, BTC dominance had settled around 63.11%, a drop of nearly 3 percentage points from its recent high. The shaded resistance zone between approximately 64.5% and 66% has now turned into a potential rejection area. Traders watching this technical formation now see a validated bearish breakdown.
Multiple analysts view this pattern as a shift in market structure. Historically, declines in Bitcoin dominance correlate with strong capital inflows into altcoins. The breakdown suggests traders may now favor higher-risk, higher-reward assets.
Altcoin Season Sparks Investor Interest
Following the breakdown, community reactions indicate increasing confidence in a new altcoin rally. Crypto enthusiasts responded swiftly to the chart, noting that the trigger for a potential altcoin boom is now in place.
Several traders mentioned that altcoins are already “kicking off,” suggesting early signs of rotation from Bitcoin into smaller market cap assets. Anup Dhungana reiterated the signal, referencing a parabolic move in altcoins in a prior tweet.
Market dynamics often follow this shift: when Bitcoin's share in the overall market drops, investors look to diversify into coins with higher potential returns. Historically, such moves have sparked triple-digit gains in tokens outside the top ten by market cap.
Still, one question remains: will this breakdown lead to a sustained altcoin bull run, or is it a short-lived spike?
Community Engagement Drives Market Narrative
The tweet charting this development quickly gained traction, with over 2.6K views, 52 likes, and 18 retweets in just hours. Engagement indicates that many in the trading community were anticipating this exact scenario.
Additional replies echoed support for the breakdown thesis. Commenters pointed out how Bitcoin's stagnation often precedes altcoin breakouts, amplifying the current market sentiment.
With traders now shifting their attention, market momentum appears to favor smaller assets. The breakdown may prove to be the catalyst many had been watching for throughout 2025.
