Bitcoin News Today: Bitcoin Dominance Hits Bearish MACD Cross as Altcoin Momentum Grows

Bitcoin dominance has registered a bearish MACD cross on the monthly chart, marking the first such event since August 2020. This technical signal has historically coincided with a shift in market dynamics, favoring altcoins over Bitcoin. The dominance level has now fallen below the key 64% support level, a threshold previously associated with extended declines in Bitcoin’s market share [1].

Historical patterns provide context for current developments. In 2017, a bearish MACD cross was followed by a sharp drop in Bitcoin dominance while altcoins surged, with some tokens recording gains of up to 200x. Similarly, in 2020, mid- and low-cap tokens experienced substantial gains, with large-cap altcoins also posting double-digit multiples. These cycles saw dominance indexes extend lower, reinforcing a trend favoring alternative cryptocurrencies [1].

In 2025, the same bearish momentum is reemerging. The MACD histogram has turned negative, aligning with prior bearish phases. If the current trend continues, the dominance level could continue to drop, potentially setting the stage for another altcoin-driven market cycle that may last several months [1].

Simultaneously, the CMC Altcoin Season Index has risen steadily, reaching 47 out of 100 in recent days. This marks a shift toward a more neutral market environment, where neither Bitcoin nor altcoins are overwhelmingly favored. The index was at 36 last week, 38 last month, and 44 yesterday, reflecting a consistent upward trajectory [1].

The index has not yet reached the 75 threshold, which typically signals a full-fledged altcoin season. However, the index's current position suggests growing momentum in the altcoin sector. This is further supported by broader market capitalization trends: total altcoin market cap has risen from under $1.2 trillion in June to above $1.7 trillion in August, indicating strong inflows into non-Bitcoin cryptocurrencies [1].

Historically, the Altcoin Season Index has fluctuated significantly, reaching a peak of 87 in December 2024 and a trough of 12 in April 2025. The current reading of 47 suggests a moderate but meaningful shift in capital allocation from Bitcoin to alternative assets, consistent with the bearish MACD cross in Bitcoin dominance.

As the market continues to evolve, investors are closely watching for further signs of momentum in altcoins. A sustained decline in Bitcoin dominance, combined with a rising Altcoin Season Index, could indicate a prolonged period where altcoins outperform Bitcoin, reminiscent of earlier bull cycles [1].

Source: [1] Bitcoin Dominance Prints Bearish MACD Cross as Altcoin Pattern Reappears With 47 CMC Altseason Reading (https://cryptonewsland.com/bitcoin-dominance-prints-bearish-macd-cross-as/)