Bitcoin Dominance Faces Crucial Test as Altcoins Await Breakout

• Bitcoin dominance nears historic resistance, a level that previously triggered altcoin surges. A breakout or rejection is imminent.
• If history repeats, dominance rejection could fuel an altseason, shifting market sentiment toward alternative cryptocurrencies.
• A decisive move past resistance may signal continued Bitcoin strength, while failure could mark the start of another altcoin cycle.

Bitcoin’s market dominance is approaching a critical resistance level that has historically dictated altcoin cycles. The current trend suggests a move could be imminent. Analysts are closely watching whether Bitcoin can break past this barrier or if another rejection will spark an altseason.

Bitcoin’s Dominance Nears Historic Resistance

Crypto analyst Moustache has recently reported Bitcoin dominance is again testing a trendline that has remained unbroken and valid for nearly eight years. Each previous touchpoint led to an altcoin season, indicating that another shift could be near.

The data tracks Bitcoin’s dominance percentage over time, revealing key trendlines and moving averages. Notably, the black trendline extends from 2017 through 2021 and is now being tested in 2025. This level has repeatedly acted as a resistance zone, pushing dominance lower and igniting altcoin surges.

Source: Moustache

Besides, Bitcoin’s dominance follows a cyclical pattern , with peaks aligning roughly every four years. This timing correlates with Bitcoin halving events and shifts in market sentiment. The most recent dominance peaks occurred in 2017 and 2021, both marking the start of strong altcoin runs. Now, Bitcoin is once again facing this long-term resistance.

Will Bitcoin Maintain Dominance or Spark an Altseason?

Since its decline after 2021, Bitcoin’s dominance has been increasing. The current trajectory suggests a possible breakout, but history warns of resistance at this level. Moreover, the blue moving average aligns with past rejection zones, reinforcing the importance of this key area.

However, if Bitcoin dominance fails to break through, altcoins could rally strongly. The repeated rejection of dominance at this resistance zone has historically resulted in capital flowing into alternative cryptocurrencies . Additionally, the broader market structure shows a consolidation phase, making this moment even more critical.

The next few weeks will determine whether Bitcoin asserts greater dominance or if altcoins take center stage. A decisive move beyond resistance would indicate continued Bitcoin strength. Conversely, another failure could mark the beginning of a strong altcoin season.