- Bitcoin dominance is retesting a multi-month support.
- A rejection may spark a bullish altcoin trend.
- The next 4–5 weeks could favor altcoin gains.
Bitcoin dominance — the metric that tracks Bitcoin’s share of the total crypto market cap — has broken below a significant multi-month trend support. This move suggests a potential shift in momentum from Bitcoin toward altcoins. The breakdown was followed by a bearish retest, a technical pattern where the price revisits a broken support level to confirm it as resistance.
If this retest fails — meaning the price is rejected — it would likely confirm the breakdown and signal the start of a trend where altcoins gain strength relative to Bitcoin.
What This Means for Altcoins
Historically, when Bitcoin dominance drops, it often coincides with a bullish phase for altcoins. This is because investors start rotating funds out of Bitcoin and into altcoins, chasing higher returns. If the bearish retest of Bitcoin dominance is confirmed in the coming days, it could open the door for a strong altcoin rally over the next 4 to 5 weeks.
Popular altcoins like Ethereum , Solana, and Avalanche could benefit from this trend, especially if Bitcoin consolidates or trends lower. Traders are already eyeing opportunities in the altcoin market, preparing for what could be an extended “altcoin season.”
Caution and Market Sentiment
While the charts point to a potential shift, it’s important to keep an eye on broader market sentiment and macroeconomic factors. A sudden reversal in Bitcoin’s price or unexpected news could invalidate this setup. Still, the current market structure supports a short- to mid-term bullish outlook for altcoins.
Traders should watch for confirmation of the dominance rejection and look to position accordingly.
Read Also :
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- SEI Hits $20B Trading Volume in Just 90 Days
- Altcoin Season Ahead? Bitcoin Dominance Faces Bearish Retest
