Altcoins CFN

  • Bitcoin dominance hits 64%, touching a multi-year resistance level that previously signaled the start of major altcoin rallies.

  • Altseason cycles historically follow Bitcoin dominance drops below 60%, a threshold that remains unbroken in 2025 so far.

  • Despite strong Bitcoin ETF inflows, mixed altcoin performance and Ethereum's decline delay clear altseason confirmation.

According to analyst Moustache, Bitcoin dominance has touched a critical resistance line last seen over four years ago. Historically, this point has triggered massive altcoin rallies. In 2019, 2020, and again in 2021, similar patterns marked the start of altseasons. Currently, Bitcoin dominance stands at 64%, signaling a potential shift. Analysts closely watch this level for a breakout or reversal.

The market has shown cyclical behavior between Bitcoin and altcoins. Each cycle begins when Bitcoin dominance declines significantly. Notably, altcoins surged when Bitcoin dominance dropped below the 60% threshold. However, that level remains unbroken today. Hence, altcoins are still waiting for clear signs of sustained momentum.

Historical Patterns Suggest Altseason May Be Near

In 2019, Bitcoin dominance started falling from 72%, paving the way for a mini altseason. By 2020, it hit around 36%. This fall allowed altcoins to gain market share. Throughout 2020 and early 2021, the market favored altcoins. This era peaked with the massive “Altseason 2021,” when dominance bottomed near 40%.

Source: Moustache

As 2022 rolled on, Bitcoin started to bounce back, steadily climbing as various global events unfolded. By 2023, it had regained a 50% dominance level, and that upward trend didn’t stop there—it continued throughout 2024. The increasing demand from institutional investors, particularly following ETF approvals, really helped to keep its momentum going strong.

Current Metrics Offer Mixed Signals

Despite signs pointing to an upcoming altseason, 2025 has delivered mixed results so far. Bitcoin has gained 10% year-to-date. Most altcoins have lagged behind, except XRP, which has posted a modest 12% gain. Meanwhile, Ethereum dropped 30%, breaking from historical altseason norms.

Additionally, Bitcoin ETFs pulled in $1.9 billion in net inflows during the first week of January 2025 alone. These inflows reinforce Bitcoin’s dominance and suggest continued institutional confidence. Moreover, this strength may delay an altcoin breakout.

However, the technical chart now reflects a familiar setup. A breakout from the resistance line could reignite altcoin momentum. Significantly, past cycles show altcoins tend to surge right after such moments. Hence, many traders believe the best time for altcoins is yet to come.

The post Altseason 2025 Looms as Bitcoin Dominance Hits Key Resistance appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.