Bitcoin Dominance Falls to 58%, Signals Altseason 2025
Bitcoin dominance has declined from 65% to 58%, breaching a multi-year trendline that coincides with previous cycle highs in 2017 and 2021. Technical indicators have turned bearish, including a weekly MACD cross, a daily death cross, and a drop below the 50-day moving average with a failed retest. Meanwhile, altcoin market capitalization broke above $3.2 trillion and is forming higher highs. Models predict that if Bitcoin dominance falls further into the 50–46% range, altcoin market cap could surge to $5–7 trillion. Traders should watch on-chain liquidity flows, dominance support levels, monthly altcoin structure, and macro liquidity indicators to confirm the early stages of Altseason 2025.
Bearish
A continued drop in Bitcoin dominance typically signals capital rotation into altcoins, increasing selling pressure on BTC and undercutting its price performance. The break of key trendlines and bearish technical crosses heighten downside risk for Bitcoin in the short term. Although Bitcoin may stabilize over time, the current setup strongly favors an altcoin rally, making the outlook for BTC price bearish.