Bitcoin News Today: Altcoin Dominance Rises as Bitcoin's Market Share Falls Below 60%

Altcoin dominance is signaling a potential bullish reversal in the cryptocurrency market as Bitcoin’s market share continues to decline. The trend has drawn attention from analysts, who note that a drop in Bitcoin dominance often precedes a surge in altcoins. On July 28, 2025, Bitcoin’s dominance fell below 60%, suggesting a growing interest in altcoins with strong real-world utility [1]. This shift is seen as a positive sign for the broader altcoin market, which has been consolidating or declining for months.

The market is showing early signs of a reversal through technical indicators such as double bottoms and breakout patterns across several altcoin charts. For instance, XRP has formed a double bottom near $2.90, with a break above $3.30 potentially sparking a rally [4]. Meanwhile, SHIB is drawing attention due to a sharp rise in its burn rate, which analysts suggest could lead to a significant price surge as it approaches its fifth anniversary [5].

Investor sentiment is shifting toward optimism as capital begins to flow back into the altcoin space. Bitcoin’s dominance, which typically moves in the opposite direction of altcoins, appears to be stabilizing, hinting that altcoins may soon take center stage [2]. The relative strength index (RSI) for altcoins is currently below 40, indicating an oversold condition and a potential early signal of an upturn [3]. This could mean that altcoins are on the verge of regaining strength relative to Bitcoin.

Furthermore, larger-cap altcoins such as Ethereum, Solana, and Avalanche are expected to lead the next wave of market recovery. Historically, when altcoin dominance rebounds from a low, it often results in strong price runs for these tokens. Smaller and mid-cap altcoins could also see significant price action if the current momentum continues, leading to what traders refer to as the “next alt season.”

Despite the positive outlook, the market remains in an accumulation phase, with prices still below key historical support levels. While this could indicate a cyclical low, it also calls for caution among investors. The balance between bearish pressure and the potential for a bullish reversal remains delicate, with key indicators such as Bitcoin dominance, RSI readings, and individual altcoin performance likely to determine the market's next move.

Overall, the altcoin sector is showing signs of regaining momentum, driven by improved technical patterns and a shift in investor focus toward projects with tangible use cases. As the market continues to evolve, traders are advised to closely monitor these indicators to better position themselves for the potential upturn ahead.

Sources:

[1] Altcoins Powering Real-World Use Cases in 2025 (https://www.ccn.com/education/crypto/underrated-altcoins-to-watch-this-altseason/)

[2] Crypto Forecast 2025: Can ADA, Conflux, or Litecoin... (https://coincentral.com/crypto-forecast-2025-can-ada-conflux-or-litecoin-compete-with-unilabs-finance-on-utility/)

[3] Altcoins Accumulation Phase Continues: Breakout... (https://blockchain.news/flashnews/altcoins-accumulation-phase-continues-breakout-expected-after-bitcoin-btc-correction-says-micha-l-van-de-poppe)

[4] XRP is showing strong signs of a bullish reversal... (https://www.instagram.com/p/DM1SUnQtG-G/)

[5] SHIB Turns 5: Burn Rate Explodes, 70% Price Surge Ahead? (https://www.coinspeaker.com/shib-5th-anniversary-burn-rate-price-surge/)