Altcoins may break out on July 1 as Bitcoin dominance nears a key resistance trendline.
Altcoin market cap must cross $1.27T to confirm breakout from current sideways structure.
Low exchange flows suggest traders are accumulating altcoins ahead of a possible rally.
Altcoins may be on the verge of a sharp breakout as multiple market analysts observe bullish patterns forming across the crypto landscape. With stocks already reaching new all-time highs, traders expect crypto to follow closely, potentially more aggressively. The altcoin market could soon enter a high-volatility phase that historically defines a real altseason.
Analysts Monitor Bitcoin Dominance for Altseason Confirmation
Bitcoin Dominance (BTC.D), a metric used to compare Bitcoin’s value against the overall crypto market, remains high at 64.9%. Analysts consider this a major reason why a broad altcoin rally has not yet materialized. According to an observation by Rekt Capital, BTC.D recently retested the 64% level and may rise toward 74%, delaying the onset of a full altseason.
https://twitter.com/el_crypto_prof/status/1939006616202023305
However, some experts expect this trend to reverse. According to chart data shared by El_Crypto_Prof, BTC.D is once again testing a long-term resistance trendline, similar to 2017 and 2021. Both prior rejections led to powerful altcoin rallies. If a similar rejection happens now, Bitcoin dominance could fall sharply, allowing altcoins to gain momentum.
Meanwhile, Daan Crypto noted that altcoins remain in a sideways structure but could break out if total altcoin market capitalization crosses the $1.27 trillion mark. This level, last tested in early 2024, now serves as key resistance.
On-Chain Indicators Point Toward Accumulation and Breakout Potential
Exchange flow data shows that altcoin movement onto trading platforms has decreased. According to CryptoQuant analyst Axel Adler Jr., the average monthly flow of $1.6 billion is below the $2.5 billion yearly average.
This often signals that traders are accumulating altcoins off-exchange, anticipating a strong price movement ahead. Crypto Patel supported this view, noting that current conditions resemble those seen before the 2021 altcoin surge.
Carl Moon added that “a GIGA altseason” may follow if dominance breaks down. Crypto Nobler further predicted that altcoins could begin breaking out as soon as July 1.
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