Altcoin Traders Gasp for Air as Bitcoin Dominance Chokes the Market

While Bitcoin stands firm like a boomer holding bonds, altcoins are left scrambling for scraps. The king of crypto isn't budging—and the rest of the market is paying the price.

The squeeze is on

Altseason? More like alt-suffocation. Traders pivoting to smaller coins are finding liquidity thinner than a VC's patience during a bear market. Every attempted rally gets smothered by BTC's gravitational pull.

Same playbook, different cycle

History repeats as 'diversified' portfolios bleed out. The so-called 'Ethereum killers' are now committing slow suicide by gas fees. Meanwhile, Bitcoin maximalists smugly recycle their 'I told you so' tweets from 2021.

Welcome to crypto's version of trickle-down economics—where the wealth stays firmly at the top. Just like your traditional finance overlords intended.

• Daan Crypto Trades says most altcoins are too weak to trade and lack clear momentum.
• Bitcoin fell slightly, while altcoins dropped over 10% last week.
• Analysts suggest waiting for sector strength or Bitcoin’s final rally before reentering altcoins.

Popular market analyst Daan Crypto Trades has cautioned traders against chasing short-term altcoin opportunities in a market lacking sustained momentum. In a post on X, Daan noted that while Bitcoin (BTC) only declined slightly last week, most altcoins suffered significant losses.

He noted, “There’s not really any strong narrative or basket of coins outperforming,” making this a difficult environment for altcoin trading unless one is shorting the weakest assets.

He further advised traders to “chill” and wait until signs of sector-specific strength emerge. According to Daan, trying to force trades in a flat or declining market can lead to unnecessary losses, especially with summer approaching and historically thinner liquidity across the board.

BTC Resilience Exposes Altcoin Weakness

Daan’s observations are backed by market data. Bitcoin dropped just 3.55% over the past week, while altcoins like Dogecoin, Avalanche, and Sui plunged over 13%. The top ten coins show a pattern of outsized altcoin losses compared to Bitcoin’s stability. Avalanche fell 13.80%, chainlink lost 13.10%, and Dogecoin slumped by 15.72%. These sharp declines reinforce Daan’s argument that there’s no reliable altcoin trend to follow at the moment.

Technical indicators also support a cautious approach. bitcoin dominance has climbed to 64.21%, as shown in TradingView data, with no signs of a reversal. The Relative Strength Index (RSI) holds at 53.34, reflecting neutrality, while the MACD shows a weak bullish crossover, suggesting consolidation rather than a breakout.

Watch for Bitcoin’s Final Push Before Altcoin Recovery

Market analyst crypto Dan of CryptoQuant echoes a similar message. He notes that altcoin investors have not realized significant profits this cycle, unlike in previous ones where capital rotated from Bitcoin into altcoins during late-stage rallies. He suggests that altcoin momentum may only return once Bitcoin reaches its final bullish peak.

In past cycles, Bitcoin dominance declined toward the end of bull runs, leading to an altcoin surge. For now, traders are urged to wait for those familiar signals rather than trying to front-run them. Patience may be more profitable than overtrading in a flat market. Until stronger narratives emerge or Bitcoin shows signs of topping out, most altcoins are likely to underperform.