Bitcoin News Today: Bitcoin Dominance Breaks 72% Resistance Sparking Altcoin Rotation Signals

Bitcoin's long-standing dominance in the cryptocurrency market may be showing signs of a potential shift, according to market analyst Merlijn The Trader. The key development lies in the rejection of Bitcoin dominance (BTC.D) at a multi-year resistance level near 72%, marked by a monthly Bearish Engulfing Candle. This pattern, similar to the one observed before the 2021 altcoin rally, suggests capital may soon begin shifting from Bitcoin to altcoins. The recent decline in BTC.D to 60.72% in August 2025 reinforces the historical parallels to previous altcoin rotation cycles [1].

Technical indicators further support this narrative. A bearish cross in the monthly MACD in mid-2025 signals a momentum shift away from Bitcoin, mirroring the setup seen in 2021 when BTC.D dropped sharply from near 73% to below 40% [1]. The current MACD histogram has moved into negative territory, indicating weakening dominance for Bitcoin. Analysts warn that if BTC.D continues to fall and breaks below 58%, altcoins could see a more pronounced surge in market share [1].

Despite these signals, Bitcoin still maintains 59.55% of the total crypto market value, and the Altcoin Season Index stands at 35, far below the 75 level typically associated with a full altcoin rally. However, selective altcoin gains are already emerging. Ethereum has risen 15.16% in the past week, driven by $18.4 billion in ETF inflows and the recent Pectra network upgrade. DeFi tokens such as Aave have also surged by 28.43%, while meme coins like DONKEY and TROLL have seen sharp rises of 349% and 241%, respectively [1].

According to Merlijn The Trader’s analysis, the current market environment mirrors key technical and behavioral patterns from 2021, when altcoins outperformed Bitcoin during a dominance pullback. The question now is whether the recent bearish signals will evolve into a sustained altcoin season or if Bitcoin will reassert control by stabilizing above 55% dominance [1].

The potential shift in capital allocation could have broad implications, particularly for altcoins with strong fundamentals and growing adoption. While speculative gains in niche tokens are already occurring, a broader altcoin surge would require a sustained reduction in Bitcoin's dominance, as well as increased institutional and retail interest in alternative digital assets [1].

Source: [1] Analyst Predicts Bitcoin Dominance Crack Could Ignite Surprise Altcoin Surge (https://cryptofrontnews.com/analyst-predicts-bitcoin-dominance-crack-could-ignite-surprise-altcoin-surge/)