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Bitcoin dominance has dipped below 61%, signaling a significant shift as altcoins gain momentum and market dynamics hint at an impending altseason.
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The Altcoin Season Index currently stands at 50%, moving closer to the critical 75% threshold that would confirm a sustained altcoin market upswing.
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According to COINOTAG, the altcoin market capitalization surged by 30% to $1.49 trillion, reclaiming a key eight-year trendline and underscoring growing investor interest.
Bitcoin dominance falls below 61% as altcoins surge; Altcoin Season Index nears 75%, signaling a potential market rotation favoring altcoins over Bitcoin.
Bitcoin Dominance Declines Amid Growing Altcoin Market Strength
Bitcoin dominance has experienced a notable decline from 64.5% to 60.9% within a short span of five days, marking its lowest point in over four months. This downward movement is highlighted by bearish engulfing candles on the monthly chart, which historically precede significant corrections. The presence of a descending trendline connecting key resistance points from mid-2021 and mid-2025 further suggests that Bitcoin’s market control is under sustained pressure. Technical indicators such as the MACD are signaling a bearish crossover, reinforcing the likelihood of continued dominance erosion.
Despite this shift, Bitcoin’s price stability above the $110,000 mark indicates that the market is undergoing a capital rotation rather than a sell-off. Investors appear to be reallocating funds into altcoins, attracted by promising rallies like Ethereum’s recent 27% surge. This dynamic reflects a maturing market where diversification within the crypto ecosystem is gaining traction.
Technical Signals Point to a Potential Altseason
Market analysts are closely monitoring the Altcoin Season Index, which measures the proportion of top altcoins outperforming Bitcoin over a 90-day period. Currently at 50%, this index is approaching the 75% level that historically confirms an altseason. The TOTAL2 index, representing the altcoin market excluding Bitcoin, has broken above a significant eight-year trendline, coinciding with a 30% increase in altcoin market capitalization to $1.49 trillion. This breakout is supported by bullish crossovers in altseason indicators, such as the 7-day average surpassing the 30-day average on Glassnode’s metrics, signaling growing momentum for altcoins.
Market Rotation and Investor Sentiment Favor Altcoins
Investor sentiment is increasingly favoring altcoins as evidenced by recent market behavior and technical analysis. The rotation from Bitcoin to altcoins is driven by several factors, including Ethereum’s strong performance and the broader diversification strategies adopted by institutional and retail investors. This shift is not indicative of Bitcoin’s decline but rather a rebalancing within the crypto asset class, where altcoins are gaining prominence due to their innovation potential and higher growth prospects.
COINOTAG sources emphasize that this phase could lead to a sustained altseason if current trends persist, with altcoins potentially outperforming Bitcoin over the coming months. Traders and portfolio managers are advised to monitor key technical levels and market sentiment indicators to capitalize on emerging opportunities.
Conclusion
The recent drop in Bitcoin dominance below 61% combined with rising altcoin market capitalization and supportive technical indicators suggests a pivotal moment in crypto market dynamics. While Bitcoin remains a foundational asset, the growing strength of altcoins points to a possible altseason driven by market rotation and investor appetite for diversification. Staying informed on key metrics like the Altcoin Season Index and TOTAL2 trends will be essential for navigating this evolving landscape effectively.
