Altcoins Gaining Momentum as Bitcoin Dominance Shows Weakness

The cryptocurrency market is showing signs of shifting momentum toward altcoins as Bitcoin (BTC) dominance weakens. The rise in the Altseason Index shows that altcoins are getting stronger, which could lead to more altcoin activity and price rises.

As a result, traders and investors are paying closer attention to this sector, looking forward to possible altseason activity.

Altseason Index Signals Early Strength in Altcoin Market

The Altseason Index has now reached 27, which shows it is moving away from the Bitcoin dominance zone below 25. This shows investors are becoming more interested in altcoins, which often indicates a rise in prices throughout the sector.

While the index remains below the 75 mark typically linked to a full altseason, the upward movement indicates that capital is starting to flow out of Bitcoin.

Historically, rising Altseason Index values tend to predict more gains in altcoins. A further boost in the index soon could result in an altseason, providing chances to gain from altcoins. From the current chart, it’s evident that altcoins are expected to rise as investors’ interest in them keeps building.

Bitcoin Dominance Shows Signs of Weakness

Market analyst Web3Niels’ chart shows that the dominance of Bitcoin is showing signs of a bearish divergence. Although Bitcoin’s dominance is going up, the Relative Strength Index (RSI) shows weakening momentum by reaching lower highs.

Furthermore, a bearish crossing on the weekly MACD suggests that Bitcoin’s dominance gain may come to an end soon.

Such technical patterns often signal trend reversals. If BTC dominance falls, the capital often shifts to altcoins and tends to result in stronger gains for that market. As a result, more investors could be interested in altcoins, raising their chances of outperforming in the next altseason.

Furthermore, the 4-hour Bitcoin dominance chart is also bearish as it heads down after an upward wedge broke its resistance.

Bitcoin dominance is now below the lower trendline in the wedge, showing a possible fall ahead. A fall in Bitcoin’s market share is indicated by the approaching 62% mark.

Institutional Accumulation of Ethereum Continues

Data shows that institutional accumulation of Ethereum (ETH) remains strong and persistent. Large flows were observed on May 28, 2025, with a total of 52.7 and 25.7 in the highest two categories.

Many of the price movements are due to large investors buying, despite a few temporary drops. Overall, these ongoing institutional investments further show that the main investors believe in the future of Ethereum.

ETH/BTC Chart Shows Key Accumulation Zone

A monthly ETH/BTC chart displays a double bottom near 0.01773, a historically significant support level. The ETH/BTC ratio rallied 398% from 0.027 to 0.14 when the curve reached this zone in 2019-2021.

The way things stand now, smart money is starting to buy ETH at levels last seen during Ethereum’s early years.

This pattern creates a good chance to buy during the mid-term. Investors who buy at this level may anticipate ETH’s chance to move ahead of Bitcoin during the upcoming market cycle.

Altseason Poised for Historic Growth in Mid-2025

DefiWimar market analyst predicts the biggest altcoin season ever will take place starting on June 1, 2025. The graph shows how altseasons in 2017 and 2021 had a similar pattern, altcoins increased sharply after rebounding from strong underlying support. At this position close to support, an increase is likely to happen soon.

In previous altcoin seasons, many low-cap tokens with great growth potential rose very quickly. The next cycle is likely to show much the same pattern, offering the potential for strong returns.

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