Bitcoin’s Iron Grip Crushes Altcoin Season Hopes—Analyst Reveals Why

Bitcoin's dominance is smothering altcoin rallies—again. Here's why traders shouldn't hold their breath for an alt season miracle.

The King Won't Share Its Throne

With BTC sucking up 54% of crypto's total market cap (and climbing), analysts warn that altcoins are stuck in perpetual 'waiting mode.' The usual rotation from Bitcoin to alts? Not happening this cycle.

Liquidity Vampire Effect

Institutional inflows are laser-focused on Bitcoin ETFs, starving altcoins of oxygen. 'Retail can't pump alts when Wall Street's BTC gambling habit burns $300M daily,' notes one trader—before buying another lottery-ticket memecoin.

Until Bitcoin's volatility stabilizes, expect more altcoin false dawns. The market's brutal hierarchy remains: Bitcoin first, scraps for everyone else.

A significant technical feature of this chart is the Bull Market Support Band, which consists of two key moving averages: a 20-week simple moving average and a 21-week exponential moving average. The space between these moving averages forms a critical support band, which Bitcoin’s dominance has consistently remained above. This suggests that bitcoin is outperforming altcoins, and an altcoin season, or a period when altcoins outperform Bitcoin, appears unlikely in the near term. BMSB Acting as Support The Bitcoin Dominance chart illustrates several instances where the BMSB acted as a support level, preventing a fall in dominance. For example, Bitcoin’s dominance decreased from approximately 56.2% in June 2024 to 54.44% in July of that year, but the BMSB held firm, signaling continued strength for Bitcoin. Similarly, another decline from 59% to 56.61% occurred in late December 2024 into January 2025, but again, the support band kept dominance from falling further. Most recently, Bitcoin dominance was supported at 61.93% on May 14, down from 65.4% on May 7. It has, however, recovered to 64.9% during this period. There Will Be No Altcoin Season  Notably, the Bitcoin Dominance chart also shows a period where the asset’s dominance dipped below the Bull Market Support Band. The instance occurred in early December, when Bitcoin's dominance dropped to about 54.6%.  However, this decline was short-lived, as dominance quickly recovered and reached 59% by December 20. While this brief deviation indicated a temporary weakening of Bitcoin’s market position, it was not enough to signal a broader trend toward altcoin dominance. Luca believes that as long as Bitcoin Dominance remains above its Bull Market Support Band, an altcoin season will not occur. Luca also shared a separate 12-hour chart, stating that as long as Bitcoin's dominance continues to hold its Bull Market Support Band, there are no risks of the current movement being a distribution range for BTC. https://twitter.com/CrypticTrades_/status/1935650012869873922 Analyst Views on Future Bitcoin Dominance and Altcoin Trends Other analysts have weighed in on Bitcoin dominance, presenting differing views on its future trajectory. Bitcoinsensus suggests that the dominance could "fall off a cliff" soon, though a slight dip may occur before a potential altcoin season.  The analyst highlights that Bitcoin's dominance has been on an uptrend for over four years and may continue to rise, possibly reaching 70% before collapsing to usher in the altcoin season.  Meanwhile, Dariusz Kowalczyk points out that Bitcoin’s dominance is showing signs of a potential double top pattern. If Bitcoin fails to break through resistance, altcoins could see a capital rotation. However, if dominance surpasses resistance, Bitcoin may be on track for a new all-time high.