Bitcoin Dominance Falls: 9 Factors To Watch For That Says The Altcoin Season Has Begun

Scott Matherson

1 day ago

3 mins read

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Bitcoin’s price is holding firm despite growing chatter about the end of its market dominance. However, analysts are turning their attention not to Bitcoin’s price but to its waning market share as signs that altcoins may finally be ready to take center stage in what could become a full-blown altcoin season. A post on X has highlighted a specific breakdown structure in BTC dominance, which is linked to nine factors indicating that the altcoin season has begun.

Technical Factors Showing Fall Of Bitcoin Dominance

According to the analyst, Bitcoin dominance reached a peak of exactly 66% on June 27, 2025, a date he calls significant for its esoteric code 434 and its occurrence on a new moon. From a technical perspective, the 66% mark coincided precisely with the 0.786 Fibonacci retracement level, a region many traders consider a reversal zone. More importantly, several warning signals are flashing for Bitcoin traders.

The analyst’s post on the social media platform X features a few price charts to emphasize how the Bitcoin dominance might be fading, alongside nine factors. From a purely technical lens, the dominance chart looks increasingly exhausted. The first factor is the most recent highest monthly RSI in the history of the Bitcoin dominance chart. This event has created an overbought condition, and the next outlook is a possible crash of the RSI. The MACD, in fact, has already crossed into bearish territory.

Furthermore, the histogram has turned negative, and the faster line has moved below the slower one, which is a classic signal of an impending downtrend. Another interesting factor is that Bitcoin dominance has now broken a key diagonal support line that held firm through much of 2024 and 2025, which is another possible structural breakdown.

Fundamental Factors Show Strong Rotation Into Altcoin Pairs

While the technical picture is deteriorating, the fundamentals are also stacking in favor of altcoins very quickly. The first fundamental factor is the importance of upcoming altcoin spot ETFs, which have the possibility to redirect institutional flows from Bitcoin into Ethereum, XRP, and others.

ETFs such as the Spot XRP, Dogecoin, and Solana ETFs could rapidly increase inflows into the rest of the crypto market, similar to how Spot Bitcoin ETFs caused massive inflows into Bitcoin. The analyst also highlighted the likelihood of upcoming U.S. Federal Reserve rate cuts, which would tilt market conditions in favor of altcoins over Bitcoin.

Momentum has also begun to shift in some trading pairs, particularly XRP/BTC and ETH/BTC, both of which are showing reversal signs from critical levels.

The XRP/BTC chart displays repeated failed attempts to break above 0.0000215 BTC, a horizontal resistance that has now been tested five times on the daily candlestick timeframe chart. At the time of writing, the XRP/BTC pair has returned to this level yet again, and based on this pattern, any clean breakout here could confirm a decisive rotation into XRP.

Likewise, Ethereum has begun to recover from long-term oversold conditions when measured against Bitcoin. The rounded bottom pattern forming on the ETH/BTC weekly chart shows a reversal from undervaluation, which in past cycles has caused substantial gains for Ethereum relative to BTC.

Featured image from Pixabay, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

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