Bitcoin News Today: Bitcoin Dominance Dips as Altcoins Show Early Outperformance Signs

The cryptocurrency market is showing early signs of a potential altseason, triggered by a rare bearish MACD crossover on the Bitcoin Dominance chart. This technical signal, previously observed in 2017 and 2021, has historically been followed by significant outperformance of altcoins relative to Bitcoin. The crossover suggests that Bitcoin’s market share may be declining, allowing alternative cryptocurrencies to attract more capital and momentum [1].

The Bitcoin Dominance index, which reflects Bitcoin’s share of the total cryptocurrency market capitalization, has broken above a long-term resistance line—often seen as a bullish indicator for altcoins. This development has sparked optimism among investors, with some analysts and traders, including crypto analyst @el_crypto_prof, pointing to the historical correlation between the crossover and major altcoin rallies [1].

In May 2021, altcoins reached a peak market cap of 130% of Bitcoin’s, a trend that many are now suggesting could repeat. The current environment, combined with broader market liquidity improvements and stronger on-chain metrics, appears to support this possibility. However, caution remains necessary, as some analysts, such as @AltcoinSensei, highlight that market behavior has become more selective in recent years, favoring projects with strong fundamentals over speculative gains [1].

The Altcoin Season Index, which measures the performance of the top 50 altcoins relative to Bitcoin over a 90-day period, is currently at 40%. While this indicates a warming market, it does not yet confirm a full-blown altseason. Investors are advised to monitor further developments, including on-chain data and macroeconomic factors such as potential U.S. interest rate cuts, which could provide additional liquidity and drive further capital rotation into altcoins [1].

The recent surge in market excitement is also reflected in social media, where posts from analysts and traders have gained significant attention. For example, @el_crypto_prof shared a chart showing the bearish MACD crossover and emphasized its historical relevance to altcoin performance. The post was widely discussed, with many expressing bullish expectations, though some users highlighted the uncertainty of past performance as a reliable indicator for future returns [1].

While Bitcoin’s potential price surge to $150,000—indirectly linked to similar technical triggers—could also benefit altcoins, it is important to distinguish between projections and actual market outcomes. Analysts have not confirmed this forecast, and it remains speculative. Investors are urged to conduct thorough research and remain cautious, as the market is still in a transition phase and subject to regulatory and macroeconomic influences [1].

Sources:

[1] Crypto Market News: Is The Altcoin Hype Over, or Just Getting Started? (https://cryptouniverse.blog/crypto-market-news-is-the-altcoin-hype-over-or-just-getting-started/)