Bitcoin News Today: Altseason Signals Grow as Bitcoin Dominance Drops 8.5%

Analysts have noted that indicators for an altseason, a period of increased interest and investment in alternative cryptocurrencies, are beginning to flash. According to Swissblock, around three-quarters of altcoins are currently at resistance levels, a critical point where altseasons either start or fail. The firm used a market impulse indicator to suggest that weak altseasons occur when Bitcoin is strong, characterized by short bursts and limited rotation. In contrast, strong altseasons require real capital flow, where Bitcoin loses relative strength and dominance drops, allowing altcoins to break out broadly.

Swissblock stated that the market is at a decision point, with Bitcoin slowing down and capital rotation having started. This shift is evident as Bitcoin has retreated 4.7% from its all-time high, dipping below $117,000 briefly during the Tuesday morning trading session. Its dominance has also declined 8.5% to below 59% over the past few weeks, primarily benefiting Ethereum, which has surged more than 60% over the past 30 days. Ethereum’s dominance has increased by 37% since late June, reaching 11.8%.

Analysts have observed several indicators suggesting the start of an altseason. Analyst “Mister Crypto” noted that the altseason index had returned to the 50 level, a clear signal that the rotation into altcoins could be underway. Additionally, analyst ‘Titan of Crypto’ observed a cup and handle chart formation on the multi-year timeframe leading into this altseason, suggesting that once it breaks, the altseason that many have given up on will finally ignite. Alex Kuptsikevich, chief market analyst, commented that altcoins have taken the initiative, as Bitcoin has not been able to maintain its growth over the past week. At such moments, enthusiasts carefully reduce their positions in Bitcoin, increasing them in altcoins.

Despite these indicators, the CoinGlass bull market peak indicator shows that none of the 30 different metrics indicate that the market is near the peak of the bull market yet. This suggests that while there are signs of an altseason, the overall bull market may still have room to run. All crypto assets are currently in decline, with the total market capitalization falling to a weekly low of $3.95 trillion. Bitcoin has slid from its intraday high of over $119,500 to fall below $117,000 briefly before consolidating at this level. Ethereum, which hit a seven-month high on Monday, had dipped below $3,700 but was still up 24% over the past week. Solana was bucking the trend with a 5% gain to top $200 for the first time since February, but the rest were in the red, cooling off from recent gains.