Altcoin Season Arrives? Bitcoin’s Dominance Hangs by a Thread in 2025

Bitcoin’s iron grip on crypto markets is slipping—altcoins are rallying, and traders are scrambling. Is this the real deal or another fakeout?

Market Shake-Up: BTC Dominance Nears Breaking Point

Bitcoin’s dominance chart looks like a cliff edge. Meanwhile, ETH, SOL, and meme coins are posting double-digit gains while Wall Street analysts still call crypto a 'niche asset class.' Classic.

The Trigger: Whales Rotate, Retail FOMO Kicks In

Chain data shows whales quietly dumping BTC for alt positions last week. Now retail’s piling in—because nothing screams 'sound investment strategy' like chasing pumps, right?

What’s Next: Make-or-Break Levels to Watch

If BTC dominance cracks 40%, expect altseason fireworks. If it holds? Another 'buy the rumor, sell the news' bloodbath. Either way, leverage traders will get rekt.

Remember: In crypto, seasons change faster than a VC’s investment thesis.

TLDR

• Bitcoin dominance is testing key resistance around 58-65%, historically marking the start of altcoin seasons
• Altcoin dominance charts show bullish divergences with RSI and MACD indicators pointing to potential momentum reversal
• Total altcoin market cap is forming a symmetrical triangle breakout pattern targeting $1.5 trillion valuation
• A golden cross occurred in July 2025 on altcoin market cap charts, the third such signal since 2017 and 2021
• Analyst predicts potential 37% crash in Bitcoin dominance to 42-45% levels if resistance trendline breaks

Bitcoin dominance is currently testing a critical resistance level that could determine whether altcoins enter their next major rally phase. The dominance metric, which measures Bitcoin’s share of the total cryptocurrency market, has reached the 58-65% zone where previous altcoin seasons began.

Analyst Batman identified this area as a key resistance zone from previous cycles. The current price formation shows a rising wedge pattern, which typically signals trend reversals. When Bitcoin dominance gets rejected from this zone, capital often rotates quickly into altcoin markets.

Bitcoin dominance is approaching a key trendline again.

Since early 2023, $BTC dominance has crushed altcoins with its steady climb. But each time it hits this upper resistance, alts catch a breather and some even rally hard.

It happened recently after bitcoin Dominance broke… pic.twitter.com/af7hL0X7JI

— BATMAN ⚡ (@CryptosBatman) July 1, 2025

The existing trendline for Bitcoin dominance dates back to 2017 and has provided resistance through 2021 and into 2025. crypto analyst CoreCrypto calls this a critical inflection point on the weekly chart. This level usually marks where dominance recedes and altcoin dominance begins.

Several technical indicators support the case for an incoming altcoin season. The weekly altcoin dominance chart displays bullish divergences according to analyst Javon Marks. While price action shows lower lows, both RSI and MACD indicators have formed higher lows.

Altcoins continue to have Bullish Divergences confirm and all this is showing, from a data standpoint, is that a HUGE BULLISH REVERSAL is in the works.

These alts can turn significantly upwards in ANY MOMENT NOW!$OTHERS.D https://t.co/CNsqsxiPZP pic.twitter.com/c5uiVHFK0d

— JAVON⚡️MARKS (@JavonTM1) July 1, 2025

The RSI has been moving upward despite declining prices. MACD lines appear to be converging with histogram bars getting thinner, indicating potential bullish momentum. These patterns suggest that downside pressure on altcoins may be fading.

Triangle Breakout Pattern Forms

The total altcoin market capitalization chart shows a symmetrical triangle formation that has been building since late 2021. Analyst Sensei points to this pattern as another key area of interest. The price has now reached the top of the triangle, suggesting a breakout is approaching.

This pattern historically leads to immediate altseason rallies after breaking resistance. The altcoin market cap is testing the triangle’s upper boundary. A volume-backed breach of this level could trigger an extended rally toward $1.5 trillion.

Support levels have remained firm since Q4 2022, creating a strong foundation for upward movement. Investors are watching for a weekly breakout close to confirm the start of a strong altcoin rally phase.

Golden Cross Confirms Momentum

DefiWimar identified a golden cross on the altcoin market cap chart in early July 2025. This occurs when the 50-day moving average crosses above the 200-day moving average. The pattern typically indicates a trend change toward bullish momentum.

This marks the third golden cross for altcoins, following previous occurrences in 2017 and 2021. Both previous golden crosses led to explosive rallies where altcoin valuations increased over ten times. The timing shows similarity to past cycles, occurring after major Bitcoin rallies during altcoin suppression periods.

Dominance Crash Prediction

CoreCrypto predicts a potential 36.91% drop in Bitcoin dominance to the 42-45% range if the resistance trendline breaks. This WOULD be lower than previous altcoin seasons but follows the declining trend of dominance crashes. The 2017 cycle saw a 50.79% drop compared to 45.10% in 2021.

Rising ethereum strength relative to Bitcoin often signals altcoin season starts. The ETHBTC chart strengthening while Bitcoin moves sideways typically opens the door for broader altcoin rallies. A breakdown from the current wedge pattern would likely result in capital rotation from Bitcoin into altcoins.

Bitcoin dominance currently sits above 65% at the time of analysis, with the resistance trendline providing the key test for altcoin season timing.