Bitcoin News Today: Bitcoin Dominance Rejected at 73% as Altseason Signals Strengthen

Bitcoin dominance appears to be facing a significant rejection as key technical indicators suggest the onset of an "altseason" potentially mirroring the 2021 market cycle. The dominance metric, which measures Bitcoin’s share of the total cryptocurrency market capitalization, recently failed to break through the critical 73% resistance level for the fourth time since 2019. This pattern has historically preceded major altcoin rallies, most notably in 2021, when BTC dominance dropped sharply to around 40%, marking the beginning of a strong altcoin season [1].

The rejection at 73% in July 2025 coincides with a bearish candle formation on the weekly chart, signaling a possible downward trend in Bitcoin's market share. Past cycles have shown that such a rejection often leads to increased capital flows into altcoins, indicating that investors may be reallocating assets away from Bitcoin to other digital assets [1].

Technical analysis supports this potential shift. The Moving Average Convergence Divergence (MACD) indicator on the bi-weekly timeframe has produced a bearish crossover, with the MACD line crossing below the signal line and the red histogram bars expanding. These signals mirror those seen at the beginning of the 2021 altseason, reinforcing the likelihood of a continued decline in Bitcoin dominance [1].

Analysts highlight that if Bitcoin's dominance continues to wane, the 60% and 50–52% levels are key support zones. These levels have historically held during past altseasons and could serve as benchmarks for the altcoin market’s upward movement. A sustained drop below these levels could trigger a broader market shift, with increased interest in decentralized finance (DeFi), AI tokens, and Layer 1 blockchains [1].

Should this pattern repeat as it did in 2021, it could reshape trading strategies in mid-2025, as investors closely track Bitcoin’s dominance to rebalance their portfolios. The current technical setup, combining historical patterns with bearish momentum signals, suggests that altcoins may be poised for a period of outperformance in the coming months [1].

Source: [1] Bitcoin Dominance Faces Rejection as Altseason 2025 Takes Shape (https://cryptofrontnews.com/bitcoin-dominance-faces-rejection-as-altseason-2025-takes-shape/)