Yeliz Akmaca 
In recent weeks, Bitcoin Dominance (BTC.D) has sharply declined by 6.30%. This signals a significant break in Bitcoin’s market dominance. Technical analysis shows that BTC.D has broken its three-year uptrend and formed a bearish MACD crossover on the 3-week chart. Experts point out that this development resembles the altcoin season pattern of 2021.
Meanwhile, market participants suggest that Ethereum will be the focus of investors in the upcoming cycle. This break in BTC.D indicates that capital is shifting from Bitcoin to altcoins. However, Bitcoin’s support zone around 60-61% may prevent altcoins from immediately rallying.
New Capital Rotation Begins for Ethereum and Altcoins
The decline in Bitcoin Dominance reveals that investors are seeking higher return potential. Especially, the ETH/BTC pair signals Ethereum’s strengthening against Bitcoin. Experienced traders compare current market dynamics to the 2021 altcoin season.
Short-term market volatility may occur before the expected altcoin rally. However, once the capital rotation completes, investors are expected to initiate a significant growth movement in Ethereum and other altcoins. Investors should patiently follow this market transformation. Additionally, breaking the BTC.D support level between 60-61% will play a critical role in altcoins gaining momentum.
Analyst Crypto Candy stated that if Bitcoin Dominance does not convincingly drop below the 60-61% support zone, altcoins may struggle to grow. The expert emphasized that while these levels hold, the altcoin market will lack sufficient momentum. During this period, altcoins may move slowly and experience minor pullbacks.
In conclusion, the market structure is preparing the ground for an altcoin season. However, developments will progress gradually, and investors should position themselves according to short-term movements.
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