Bitcoin Dominance Drops 8% as ETH Hits ATH, @CryptoMichNL Flags Altcoin Rotation for BTC and ETH

Bitcoin dominance has been on a notable decline, dropping by 8% as highlighted in a recent analysis, paving the way for Ethereum to reclaim its all-time high. This shift is sparking renewed interest among traders, signaling potential opportunities in the altcoin market as market confidence rebounds. According to trader Michaël van de Poppe, this movement suggests that altcoins could soon pace up alongside Ethereum, creating a favorable environment for diversified crypto portfolios. As we delve into this development, it's crucial to examine the trading implications, including key support and resistance levels, volume trends, and cross-market correlations that could influence your next moves in the cryptocurrency space.Bitcoin

confidence returns to the markets, altcoins are poised to benefit from this Ethereum-led rally. Historical patterns show that when Bitcoin dominance dips sharply, altcoins like SOL, ADA, and BNB often experience outsized gains, sometimes outperforming BTC by 2-3x in short-term rallies. For instance, if we look at on-chain data, Ethereum's gas fees have stabilized, indicating healthier network activity that could spill over to layer-2 solutions and DeFi tokens. Trading opportunities here include longing altcoin pairs against USDT, with entry points near recent support levels—for SOL, around $140 with resistance at $180, based on August 2025 price action. Market sentiment indicators, such as the Crypto Fear and Greed Index, are shifting from neutral to greedy, further validating the bullish outlook. Institutional flows are also noteworthy; recent reports indicate increased ETF inflows into Ethereum products, which could amplify the rally. However, traders must remain vigilant for volatility; a sudden BTC rebound could reverse the dominance trend, so setting stop-losses at 5-7% below entry is advisable$BTC $ETH