Analysts Spot 2021-Style Setup as Momentum Shifts Toward Alts
Bitcoin’s market dominance has been sharply rejected near the 72% multi-year
resistance, printing a monthly Bearish Engulfing Candle—a pattern
last seen before the explosive 2021 altseason. According to analyst Merlijn The
Trader, this could mark the start of capital rotating into altcoins, though
history shows such moves can happen suddenly, leaving traders little time to
react.
Technical signals add weight to the case: the monthly MACD turned bearish in mid-2025, mirroring the setup that preceded Bitcoin’s dominance collapse from 73% to 40% in 2021. $BTC ’s share now sits at 59.55%, and a sustained drop below 58%
could accelerate altcoin gains.
So far, altcoin moves remain selective. Ethereum ($ETH ) is up 15.16% this week on strong ETF inflows ($18.4B) and its Pectra upgrade. DeFi leaders like Aave gained
28%, while meme coins such as DONKEY (+349%) and TROLL (+241%)
saw speculative spikes. The Altcoin Season Index is still at 35—well
below the 75 needed to confirm full altseason—but the stage for a broader shift
may already be set.
