Bitcoin Dominance Drops Below 64.8% Altcoins Poised for Rally

Bitcoin dominance has recently fallen below a critical support level of 64.8%, signaling a potential shift in market dynamics that could favor altcoins. This technical breakdown follows a rising wedge pattern, with the price target for Bitcoin dominance now set at 61%. This level was last seen during previous altcoin market rotations, suggesting that capital may soon flow into alternative cryptocurrencies.

The Relative Strength Index (RSI) on the dominance chart has also crossed downward, adding bearish momentum to the breakdown. Historically, altcoin seasons have begun when Bitcoin dominance weakens, as investors seek higher returns by moving capital from Bitcoin into smaller, more volatile tokens. The current market structure mirrors patterns from June 2015, September 2019, and June 2023, each of which marked the start of multi-month altcoin rallies delivering returns ranging from 5x to 50x.

Crypto analyst Gordon identified a fourth RSI bounce off a multi-year uptrend line on the total altcoin market cap chart. This trendline has previously triggered major altcoin rallies in November 2015, September 2019, and June 2023. The RSI value currently sits near 36, matching historical pivot points before major upswings. Traders monitoring these long-term patterns view this rebound as a high-confidence signal for an upcoming rally. The total altcoin market cap has started consolidating near a historical support range, holding steady despite Bitcoin’s recent volatility and price movements.

If the RSI continues climbing from current levels, it could confirm a new upward phase for altcoins. The pattern alignment with previous cycles adds weight to the bullish thesis. Analysts predict potential returns of 150x to 175x for low-cap altcoins during this cycle. Discover, a crypto analyst, previously turned $212 into over $200,000 by timing Bitcoin dominance peaks and riding altcoin momentum in 2017 and 2021. The analyst’s overlay charts show altcoin surges of 120x and 150x after Bitcoin dominance peaked in previous cycles. These cycles appear connected to long-term market rotations between Bitcoin and altcoins, where altcoins typically benefit from disproportionate capital inflows when Bitcoin dominance plateaus or reverses.

New narratives around DePIN, AI, and modular Layer 1 blockchains could drive momentum in this cycle. Fresh money entering crypto through ETFs and stablecoin ramps may seek asymmetric returns that altcoins offer. Analyst Javon Marks confirmed that Bitcoin dominance has entered extremely overbought territory on the RSI. Previous overbought levels in 2015 and 2019 both preceded major altcoin expansions. The RSI chart shows bearish divergence, indicating momentum is decreasing despite price increases. Similar patterns emerged before sharp drops in Bitcoin dominance during past cycles. Marks believes the market may already be preparing for another shift where altcoins capture the majority of capital inflows. The combination of technical indicators and historical patterns suggests the rotation could happen soon.