Bitcoin Dominance Breaks Trendline, Altcoins Set to Rally
Analyst Blend Visions spots a decisive breakdown in Bitcoin dominance from its multi-year trendline controlling the bull run since September 2022. Bitcoin dominance peaked at 66.1% and is now forming a bear flag pattern. If this setup follows through, dominance could drop to 57–58%. A decline in Bitcoin dominance typically signals renewed altcoin momentum as traders rotate capital into alternative tokens. Altcoins may enter a significant rally if the 57–58% zone is breached.
Bullish
A break of a long-standing trendline in Bitcoin dominance often precedes rotation into altcoins. Historical precedents—in early 2021 and mid-2017—saw notable Bitcoin dominance drops followed by broad altcoin rallies. Short-term, traders may increase altcoin allocations, driving higher volume and volatility in mid-cap and small-cap tokens. Long-term, an extended bear flag resolution below 58% could mark a sustained altcoin season, shifting market leadership away from Bitcoin and unlocking new opportunities across DeFi and emerging token sectors.