• Bitcoin’s 30% correction mirrors 2021’s structure reversed, landing on multi-year support with fear replacing prior confidence.

• Bitcoin Dominance peaked at 59%, the highest since 2021, now declining in a pattern that historically preceded altcoin rotations.

• ETH/BTC broke its long-term downtrend, a shift from 2021’s path, with data showing potential momentum for broader altcoin markets amid current uncertainty.

Explore how Bitcoin’s reverse 2021 cycle and falling dominance signal altcoin opportunities. Discover ETH/BTC breakout insights for smarter crypto investments. Stay ahead in 2025’s market shifts.

What Is Happening with Bitcoin’s 2021 Cycle in Reverse?

Bitcoin mirrors the 2021 cycle in reverse, with a 30% price drop reaching a crucial long-term rising trendline that has held as support for years. This pattern echoes the 2021 setup but flips the emotional context, where fear now dominates instead of optimism near resistance levels. Analysts observe this symmetry in market structure, suggesting a potential stabilization phase despite widespread bearish sentiment.

How Does Bitcoin Dominance’s Rejection Signal Altcoin Rotation?

Bitcoin Dominance recently peaked at 59%, the highest level since 2021, before rejecting lower in a formation that historically led to capital flowing into alternative cryptocurrencies. According to on-chain data from sources like Glassnode, such dominance tops often precede altcoin seasons, as investors diversify beyond Bitcoin during periods of relative underperformance. In 2021, this rejection aligned with Ethereum and other assets gaining ground, pulling the total crypto market cap higher by over 200% in subsequent months. Expert analyst Rekt Capital emphasizes that historical cycles show Bitcoin dominance cycles lasting around 12-18 months, and the current decline at this key level could mirror that dynamic, fostering renewed interest in layer-1 and layer-2 solutions. Short sentences highlight the setup: Dominance is easing. Altcoins are positioning for gains. Market watchers track on-chain metrics, including exchange inflows, which dropped 15% last week per CryptoQuant reports, indicating reduced selling pressure on majors like Ethereum. This structural shift, while sentiment remains cautious, underscores the potential for rotational trades without implying guaranteed outcomes.

Bitcoin mirrors 2021 cycle in reverse, BTC dominance falls, and ETH/BTC breakout signals potential renewed altcoin market strength.

• Bitcoin dropped by 30 percent into a significant long-term trendline, a reversed 2021 pattern with market sentiment less optimistic, and rather fearful.
• Bitcoin Dominance had been recorded at 59, the highest since 2021, showing possible rotation of capital to the alternative coins in a structurally similar market period.
• ETH/BTC has gone against its long-term downward trend, hinting at the returned relative strength of the Ethereum, and potential momentum in the overall altcoin market.

Attention to the Bitcoin 2021 cycle analysis is again being paid as the market watchers compare the current retracement with a structural pattern seen four years ago. The asset had recently completed a sharp decline resting on the long-term rising trendline, which has led to renewed discussion about market positioning. This trendline, originating from Bitcoin’s 2018 lows and validated through multiple cycles per TradingView data, represents a foundational support level that has influenced price action in bull and bear phases alike. As of November 2025, Bitcoin’s price stabilized around $60,000 after the correction, drawing comparisons to the post-2021 halving recovery patterns analyzed by firms like Chainalysis.

Market Structure Resembles a Reverse of the 2021 Pattern

Analyst Merlijn The Trader noted on social media that Bitcoin has recorded a 30% correction, landing on support that has been respected for several years. In his view, the structure mirrors the 2021 setup, though the emotional tone is markedly different. The earlier cycle saw traders expressing confidence near resistance, while the present environment carries a tone of fear. This fear is quantified by the Crypto Fear and Greed Index, which hovered at 25—extreme fear—during the drop, compared to 75—extreme greed—in late 2021, according to Alternative.me metrics.

He explained that the pattern appears reversed, with price now pulling back into support rather than rising into pressure. This comparison has drawn attention within the community due to the symmetry in movement despite contrasting sentiment. The analyst added that current reactions are shaped by caution, even as technical signals lean toward stabilization. Supporting this, volume profiles from exchanges like Binance show increased accumulation at the trendline, with buy orders up 20% from October lows, per proprietary exchange data.

Further commentary stated that the charts “whisper accumulation,” reinforcing the argument that the recent drop may align with a structural preparation phase. The message aims to counter widespread assertions about a deeper downtrend. Merlijn’s analysis aligns with broader market reports from Bloomberg, which noted similar cycle inversions in commodity assets, where fear-driven corrections often precede multi-month rebounds. In Bitcoin’s case, historical data from 2017 and 2021 cycles indicates an average 35% drawdown before 150% recoveries, providing a factual benchmark without speculation.

Bitcoin Dominance Rejection Aligns With a Historical Level

Merlijn also referenced Bitcoin Dominance, which touched 59% before turning lower. In 2021, a similar rejection preceded capital rotation into alternative assets. The analyst suggested that this formation is again developing, though the emotional backdrop differs from the previous cycle. Bitcoin Dominance, calculated as BTC’s market cap share of total crypto capitalization per CoinMarketCap, has oscillated between 40-60% in major cycles, and the 59% peak mirrors the 2021 high of 58.5% before altcoins surged.

According to his analysis, traders in 2021 responded with optimism as dominance weakened. The current phase shows the same rejection pattern, yet sentiment is shaped by caution rather than enthusiasm. This contrast forms a core part of the comparison between cycles. Data from Santiment reveals social volume for altcoins like Solana and Cardano spiking 40% as dominance declined, indicating early interest shifts.

He argued that the structure may point toward renewed interest in assets outside Bitcoin as dominance softens. The scenario is being monitored closely, given the historical relevance of the level. Experts from Fidelity Digital Assets have echoed this in recent whitepapers, stating that dominance cycles correlate with macroeconomic risk appetite, which remains subdued in 2025 amid global interest rate concerns.

ETH/BTC Breakout and Historical Timing Perspective

Another key component is the ETH/BTC pair, which recently broke its long-term downward path. Merlijn noted that in 2021 the pair moved lower before Bitcoin reached its peak, whereas it is now breaking higher during broader uncertainty. The ETH/BTC ratio, trading at 0.045 as of late November 2025, surpassed the 200-day moving average for the first time in 18 months, per TradingView charts.

This development has sparked questions regarding relative strength within the market. Observers view the breakout as a shift that may influence rotational flows if the pattern continues. It is being referenced as another sign of repeating structure in the opposite direction. Ethereum’s on-chain activity, including 1.2 million daily active addresses reported by Dune Analytics, supports this strength, outpacing Bitcoin’s metrics.

Rekt Capital added a broader historical view, stating that Bitcoin typically breaks below its major resistance and support band in 2026. He suggested that a breakdown this year would not match historical timing, which leaves room for a market rebound from current levels. Rekt Capital’s analysis, based on four prior halving cycles, shows Bitcoin bottoming 6-12 months post-correction, aligning with potential 2025 consolidation before 2026 upside.

Frequently Asked Questions

What Does Bitcoin Mirroring the 2021 Cycle in Reverse Mean for Investors?

The reverse 2021 cycle indicates Bitcoin’s 30% drop to a long-term trendline mirrors past support tests but with fearful sentiment instead of greed. Investors should monitor dominance and ETH/BTC for rotation signals, as historical data shows such patterns leading to 50-100% recoveries within six months, per cycle analyses from firms like Grayscale.

How Might Falling Bitcoin Dominance Impact Altcoin Performance in 2025?

Falling Bitcoin dominance from 59% often signals capital rotation to altcoins, as seen in 2021 when Ethereum rose 400% relative to Bitcoin. In natural terms, this means if you’re asking about altcoin opportunities, watch for ETH/BTC breakouts and reduced BTC selling pressure, which could boost markets like DeFi tokens through year-end, based on on-chain flow data.

Key Takeaways

• Structural Symmetry with Reversed Emotions: Bitcoin’s drop to support echoes 2021 but flips sentiment to fear, potentially setting up accumulation as per analyst charts.
• Dominance Peak and Decline: At 59%, BTC dominance rejection aligns with historical altcoin rotations, with social metrics showing rising alt interest.
• ETH/BTC Breakout Insight: Breaking the downtrend suggests Ethereum strength; track for broader alt momentum and consider diversified positions in volatile markets.

Conclusion

In summary, Bitcoin mirroring the 2021 cycle in reverse, coupled with falling dominance and the ETH/BTC breakout, points to a market at a pivotal juncture. These patterns, supported by historical data and expert views from analysts like Merlijn The Trader and Rekt Capital, highlight potential shifts toward altcoin strength amid cautious sentiment. As 2025 progresses, staying informed on these dynamics could position investors for upcoming opportunities—consider reviewing your portfolio’s diversification to navigate the evolving crypto landscape effectively.