Bitcoin’s dominance has been rejected at a multi-year resistance level, indicating a potential surge in altcoins as market dynamics shift.
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Bitcoin dominance rejected at approximately 72% with a monthly Bearish Engulfing Candle, similar to pre-2021 altseason patterns.
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Monthly MACD bearish cross in mid 2025 signals momentum shift away from Bitcoin toward altcoins.
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Altcoin Season Index at 35/100 shows selective altcoin gains, but Bitcoin still holds 59.55% market share.
Bitcoin’s market dominance faces a significant rejection, hinting at an impending altcoin rally. Discover the latest insights on market dynamics.
What Does Bitcoin Dominance Rejection Mean for Altcoins?
Bitcoin’s market dominance has faced a decisive rejection at a multi-year resistance level, raising the possibility of an accelerated altcoin rally. According to market analyst Merlijn The Trader, the current setup is similar to the period preceding the 2021 altseason, when capital shifted sharply from Bitcoin into alternative digital assets.
How Has Bitcoin Dominance Changed Over Time?
Since 2017, Bitcoin Dominance (BTC.D) has moved under a descending resistance line, limiting its ability to sustain rallies. In late 2020 and early 2021, BTC.D attempted to break higher near 73%, but a monthly Bearish Engulfing Candle led to a steep drop toward 40% by mid-2021.
Bitcoin Dominance 1-month price chart, Source: Merlijn The Trader on X
Between 2021 and early 2025, BTC.D recovered gradually and retested the same resistance near 72%, where another Bearish Engulfing Candle formed. This rejection, seen in August 2025, coincided with a decline to around 60.72%, supporting the similarities to previous altcoin rotation cycles.
What Technical Indicators Support This Rejection?
Technical indicators support the rejection narrative. In early 2021, the monthly MACD line crossed below its signal line, aligning with BTC.D’s sharp decline. A similar bearish cross appeared in mid-2025, shortly after the resistance rejection.
The MACD histogram has since moved into negative levels, suggesting declining momentum in Bitcoin’s dominance. Such patterns historically precede periods where altcoins gain larger market share.
Are Altcoins Gaining Ground Despite Bitcoin’s Dominance?
Despite technical weakness in BTC.D, Bitcoin still holds 59.55% of the total crypto market value. The Altcoin Season Index is at 35, well below the 75 level needed to confirm altseason.
Ethereum has gained by 15.16% in the past week, supported by ETF inflows totaling $18.4 billion and its recent Pectra network upgrade. DeFi assets such as Aave have also rallied, posting a 28.43% weekly gain.
Meanwhile, speculative interest in meme coins has surged, with tokens like DONKEY and TROLL rising by 349% and 241% respectively. However, these rallies remain concentrated and have not shifted overall dominance away from Bitcoin.
Key Takeaways
- Bitcoin’s dominance rejection: Indicates a potential shift towards altcoins.
- Technical indicators: MACD bearish cross suggests declining momentum for Bitcoin.
- Selective altcoin gains: Ethereum and DeFi assets show significant weekly increases.
Conclusion
Bitcoin’s market dynamics are shifting as its dominance faces rejection at critical resistance levels. This sets the stage for potential altcoin rallies, with historical patterns suggesting that traders should remain vigilant. The current market landscape indicates a possible transition, making it essential for investors to adapt their strategies accordingly.
