Bitcoin Dominance at 65% May Signal Altcoin Season

Bitcoin dominance has been a significant barrier to the start of an altcoin season. Historically, for altcoins to rally, Bitcoin dominance needs to decrease. However, the current trend shows Bitcoin dominance continuing to rise, making the prospects of an altcoin season uncertain. A crypto analyst has predicted a potential shift in this trend, forecasting a significant drop in Bitcoin dominance that could pave the way for altcoins to gain traction.

Over the years, Bitcoin dominance has followed a trendline that has acted as a resistance point. This trendline, which started in 2017, has continued to slope down through 2021 and into 2025. The breakdown from this trendline is crucial as it often marks a sharp decline in Bitcoin dominance, allowing altcoins to gain prominence. Currently, Bitcoin dominance is above 65%, and it has recently touched the resistance trendline. According to crypto analyst CoreCrypto, this is a pivotal moment, especially on the weekly chart. This point is typically where dominance starts to recede, leading to an increase in altcoin dominance.

Key developments to watch on the dominance chart include a rejection from the resistance trendline, where the dominance currently lies above 65%. Additionally, there is support for the dominance, as indicated by the yellow line in the chart. A break below this support level is critical for the fall in dominance. Another significant indicator is the rising strength of Ethereum. Historically, when the Ethereum price outperforms the Bitcoin price, it has signaled the beginning of an altcoin season. As the ETHBTC chart strengthens and Bitcoin experiences sideways movement, it creates an opportunity for altcoins to rally into the next altcoin season.

In the event of a break from the resistance trendline, the analyst predicts a sharp decline. CoreCrypto forecasts a 36.91% drop to the 42%-45% levels. This decline is lower compared to previous altcoin seasons but follows the declining trend of a 50.79% drop in 2017 compared to a 45.10% drop in 2021. The analyst explains, “If BTC.D gets rejected from this resistance again, it could mark the start of the long-awaited Altseason 2025. A breakdown from this wedge would likely result in capital rotation from BTC into altcoins — just like in previous cycles.”