Altcoin Momentum Rises as Bitcoin Dominance Falls Below Key Support Level

Bitcoin Dominance dropped below 62.20%, signaling a bearish shift as capital begins rotating into alternative cryptocurrencies.

MACD indicators confirm strong downside momentum in BTC.D, aligning with rising investor confidence in altcoin performance.

Altcoin Dominance excluding ETH and stablecoins is rising, reflecting increased speculative interest across broader altcoin markets.

Altcoin dominance is showing early signs of strength as Bitcoin’s market share breaks down from a long-standing support level. The latest data points to a growing interest in alternative cryptocurrencies as Bitcoin’s dominance weakens.

Bitcoin Dominance Breaks Key Support Level

Bitcoin Dominance (BTC.D) dropped to 61.71% after losing a major support level at 62.20%. This level had remained stable since April 2025. The current move represents a clear bearish signal in Bitcoin's dominance trend.

According to market data, this 0.86% drop in a single day reflects a change in investor preference. The chart now suggests that altcoins are starting to gain more capital allocation as traders seek higher potential returns.

Source: TradingView

Technical indicators also support this shift. The MACD indicator shows strong downside momentum. The MACD line has fallen to -0.61, below the signal line at -0.24. The histogram continues to expand negatively, reflecting continued pressure on BTC dominance.

The next potential support range lies between 60.0% and 60.5%, which previously served as a base during consolidation phases. A move into this range could lead to accelerated interest in high-cap altcoins.

Market Behavior Points Toward Early Altseason Phase

The trend in BTC.D is unfolding as Bitcoin maintains a relatively stable price. This suggests that capital is not exiting the crypto market but rather rotating into other assets. Traders typically watch for such movements as early signals for the onset of an altseason.

Alphractal posted a timely analysis, saying, “Something big is definitely happening with Altcoins... the market has been climbing, gradually draining some of Bitcoin’s dominance.” The tweet also highlighted that the Altcoin Dominance metric excluding stablecoins is key to evaluating the real trend.

While this dominance level hasn't yet reached the historical 25% mark that previously preceded major altcoin rallies, the current growth is notable. The evolving structure of the market—with a greater number of altcoins now—may mean previous dominance thresholds may no longer apply.

The analysis emphasized the strategic importance of focusing on Altcoin Dominance excluding Ethereum or stablecoins. This approach has historically offered better performance relative to Bitcoin in emerging altcoin uptrends.

Traders Monitor Capital Rotation Toward Altcoins

The ongoing fall in BTC.D comes as major altcoins such as Ethereum and Solana begin attracting renewed attention. As Bitcoin remains elevated in price but loses share in market dominance, altcoins may see increased capital inflows.

The MACD trend suggests sustained bearish momentum, adding weight to the possibility of continued growth in altcoins. If BTC.D enters the 60% zone, the pace of altcoin buying could increase further.

Investors and analysts are now closely watching how the market responds in the coming sessions. As long as Bitcoin remains steady in value while dominance declines, the altcoin sector is expected to outperform in the near term.

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