Bitcoin dominance (BTC.D) has recently shown a clear 5-wave decline pattern on the 4-hour chart, which is a technical signal suggesting that the downward impulsive phase in Bitcoin's share of the total crypto market capitalization is underway. This Elliott Wave pattern implies that Bitcoin's dominance over the crypto market is decreasing, which historically hints that altcoins may enter a strong bullish phase or "altcoin season."
Key points from the recent analysis:
The 5-wave decline indicates that Bitcoin dominance is dropping from highs, suggesting that investors are diversifying more heavily into altcoins.
This pattern often marks the start of altcoins gaining market share and seeing significant price rallies, as the market leadership shifts beyond Bitcoin.
The decline in dominance is not necessarily due to Bitcoin weakness, but because altcoins are maturing with real-world utility, institutional interest, and growing ecosystems.
2025 is notable for widespread adoption of decentralized ledger technologies (DLTs) beyond Bitcoin alone, which supports this decreasing dominance trend.
Bitcoin's dominance could potentially dip below 35%, down from previous cycles, as altcoins build "digital economies" on various blockchain platforms.
In summary, the 5-wave drop in Bitcoin dominance points toward a possible upcoming altcoin season where alternative cryptocurrencies may outperform Bitcoin significantly in terms of price and market cap growth. This aligns with broader market trends of expanding blockchain use cases and institutional capital flowing into a diverse crypto asset ecosystem.
