Altcoin Season May Be Imminent as BTC Dominance Hits Key Resistance

Key Insights:

• Bitcoin dominance is testing key resistance, historically a trigger for altcoin season.
• Altcoin dominance chart forms bullish divergence, signaling a momentum reversal.
• Altcoin market cap nears triangle breakout, pointing to a potential $1.5T valuation move.

Several market analysts have claimed that a new altseason is imminent, with Bitcoin dominance breaking a major resistance. Indicators on the technical level, including altcoin dominance curves, market capitalization levels, and moving averages, show strong bullish reversal alerts.

In case these structures are correct, an altcoin breakout might already be taking place.

Altcoin Season Begins as BTC Dominance Faced Resistance

Since early 2023, Bitcoin dominance has been increasing at the expense of most altcoin performance in all categories. This rise, however, hit the technical brick wall at the 58% domination point.

Analyst Batman observed that the area had been used as a resistance zone during the previous altseason.

The existing price formation identified a rising wedge, which usually signaled trend reversals. Historically, when Bitcoin dominance was rejected from this zone, capital quickly rotated into altcoins. A similar rejection here could signal the beginning of another altseason.

Notably, traders were watching for a weekly candle reversal or lower-high confirmation. If Bitcoin dominance began to fall from this zone, it would have reinforced the potential for capital inflows into altcoin markets.

Bullish Divergences in Altcoin Dominance

As Bitcoin dominance hovered near its peak, altcoin dominance flashed signs of reversal. Analyst Javon Marks stated that the weekly chart has a number of bullish divergences.

Specifically, the price action held lower lows, but the RSI and MACD produced higher lows. This typically signaled a trend of slowing down and meant that buyers were acting.

This deviation was greatest on the RSI that had been moving in an upward direction despite declining prices. MACD lines, too, appeared to converge, and the histogram bars were getting thinner, which was a first sign of an optimistic trend. All these were signs that downside altcoin pressure might have been fading.

If dominance broke out from its downtrend, it could have marked the start of a broader altcoin rally. Such divergences were usually the initial indicator before rotation appeared on price charts.

Altcoin Market Cap Formed Breakout Structure

Additionally, Sensei pointed to the total alts market capitalization chart as another key area of interest. The chart showed a symmetrical triangle formation that had been coiling since late 2021. Price had now risen to the top of the triangle, indicating that a breakout was imminent.

This pattern was historically followed by an instant altseason after overcoming resistance. Altcoin market cap was testing the top boundary of the triangle. If this level was breached with volume, it could have prompted an extended rally toward the $1.5 trillion level.

More so, the support levels remained firm, having held since Q4 2022, forming a strong foundation for the next leg upward. Remarkably, investors were closely monitoring a weekly breakout close.

If confirmed, it would have signaled the start of a strong upside phase in altcoin markets, consistent with previous altseason patterns.

Analyst Confirmed Golden Cross

Sharpening the momentum, DefiWimar also indicated a golden cross on the altcoin market cap chart. The trend that was created when the 50-day moving average moved above the 200-day moving average was normally an indication of a trend change. The cross, which took place in early July 2025, is the third cross by alts.

Previous golden crosses appeared in 2017 and 2021. These two cases were followed by explosive rallies where overall altcoin valuations went up well over ten times. The latest setup provided a considerable boost to the altseason storyline alongside the rejections of the dominance and divergence indications.

The similarity in the structure and timing of cross-cycles was very impressive, as compared in his analysis. Each of the three golden cross moments came right after a large Bitcoin pump, and at the point of altcoin suppression.

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