Altcoins Poised for Breakout as Bitcoin Dominance Tests Resistance

Altcoins are poised for a significant breakout as the crypto market approaches a critical juncture. The altcoin market cap needs to surpass $1.27 trillion to confirm a breakout from its current sideways structure. This level, last tested in early 2024, now serves as key resistance. The current market conditions suggest that traders are accumulating altcoins off-exchange, anticipating a strong price movement ahead. This accumulation is evident from the low exchange flows, which indicate that traders are holding onto their altcoins rather than selling them on trading platforms.

Bitcoin Dominance (BTC.D), a metric used to compare Bitcoin’s value against the overall crypto market, remains high at 64.9%. This high dominance has been a major factor in delaying a broad altcoin rally. However, analysts are closely monitoring BTC.D as it tests a long-term resistance trendline, similar to patterns observed in 2017 and 2021. Both prior rejections of this trendline led to powerful altcoin rallies. If a similar rejection occurs now, Bitcoin dominance could fall sharply, allowing altcoins to gain momentum.

The altcoin market is showing signs of a potential breakout, with multiple market analysts observing bullish patterns forming across the crypto landscape. With stocks already reaching new all-time highs, traders expect crypto to follow closely, potentially more aggressively. The altcoin market could soon enter a high-volatility phase that historically defines a real altseason. This phase is characterized by sharp price movements and increased trading activity, which could lead to significant gains for altcoins.

According to an observation by Rekt Capital, BTC.D recently retested the 64% level and may rise toward 74%, delaying the onset of a full altseason. However, some experts expect this trend to reverse. If BTC.D falls below the 64% level, it could signal the start of a new altseason, with altcoins gaining momentum and outperforming Bitcoin. This scenario is supported by the current accumulation of altcoins off-exchange, which suggests that traders are positioning themselves for a strong price movement ahead.

CryptoQuant analyst Axel Adler Jr. noted that the average monthly flow of altcoins onto trading platforms has decreased to $1.6 billion, below the $2.5 billion yearly average. This decrease in exchange flows often signals that traders are accumulating altcoins off-exchange, anticipating a strong price movement ahead. Crypto Patel supported this view, noting that current conditions resemble those seen before the 2021 altcoin surge. Carl Moon added that “a GIGA altseason” may follow if dominance breaks down. Crypto Nobler further predicted that altcoins could begin breaking out as soon as July 1.