Bitcoin Dominance Hits a Tipping Point as Analyst Sees Altcoin Season Ahead

Bitcoin dominance is nearing a critical level, sparking speculation about the possibility of an impending altcoin season. Despite months of anticipation, an altcoin rally has yet to materialize, as Bitcoin continues to maintain its dominance over altcoins. The dominance chart reflects an overall upward trend, with occasional dips that are quickly recovered.

Renowned market strategist Michaël van de Poppe has highlighted that Bitcoin dominance might be nearing a turning point. According to his analysis, a breakdown in dominance could pave the way for a significant altcoin rally.

Data from his chart shows that Bitcoin dominance currently stands at 60.64%, with the 20-month moving average (MA) at 59.29%. Bitcoin briefly fell below this key level in September, only to bounce back quickly. This repeated testing of the MA mirrors patterns seen in previous cycles, potentially indicating an imminent trend reversal.

Van de Poppe draws parallels to Q4 2019, when Bitcoin dominance peaked at 73.02% before beginning a slow descent. By July 2020, the dominance finally broke below the 20-month MA, dropping further to 39.63% by December 2021. This decline coincided with the last major altcoin season, during which altcoins significantly outperformed Bitcoin.

Van de Poppe suggests that a similar trend is forming now, increasing the likelihood of a new altcoin rally as Bitcoin dominance approaches this critical threshold.

Another well-known analyst, Steve from Crypto Crew University, echoed Van de Poppe's observations. He identified similarities between the current Bitcoin dominance levels and those seen before major altcoin rallies in 2017 and 2021. Steve speculated that 2026 might witness a similar rally, stating, "History doesn’t repeat, but it sure rhymes."

He pointed out that Bitcoin dominance is facing resistance at the same levels that predated earlier alt runs, suggesting that an altcoin rally might be delayed but not absent.

The platform Bitcoinsensus also weighed in, highlighting signs supporting the possibility of an altcoin surge. Analysts at the firm noted that Bitcoin dominance has recently faced another rejection from macro resistance. This rejection reflects a monthly decline, resembling patterns observed during the dominance breakdown in 2021, which preceded the last altcoin rally.

Bitcoin’s repeated struggles at resistance levels suggest a brewing shift in market dynamics that could favor altcoins in the near future.