Altseason is Coming as Bitcoin Dominance Hits Important Resistance Level

According to analyst Moustache, Bitcoin's dominance has reached a critical resistance level last seen over four years ago. Historically, this point has triggered significant bullish altcoin waves. In 2019, 2020, and again in 2021, similar patterns marked the beginning of altcoin seasons. Currently, Bitcoin's dominance stands at 64%, signaling a potential shift. Analysts are closely following this level for signs of a breakout or reversal. The market has shown cyclical behavior between Bitcoin and altcoin. Each cycle begins when Bitcoin's dominance decreases significantly. Notably, altcoin surges when Bitcoin's dominance falls below the 60% threshold. However, that level has not been broken until today. Therefore, altcoin is still waiting for clear signs of sustaining momentum. Historical Patterns Show That Altseason May Be Coming Soon In 2019, the dominance of Bitcoin began to decline from 72%, paving the way for a small altcoin season. By 2020, it reached around 36%. This decline allowed altcoins to gain market share. Throughout 2020 and early 2021, the market favored altcoins. This era peaked with the huge "altcoin season 2021," when dominance hit a low of nearly 40%.

As the year 2022 passed, Bitcoin began to recover, steadily increasing as many global events unfolded. By 2023, it had regained a dominance level of 50% and that bullish trend did not stop there—it continued throughout 2024. The growing demand from institutional investors, especially after the ETF was approved, has truly helped sustain its strong growth momentum. Current Data Providing Mixed Signals Although there are signs indicating an upcoming altcoin season, 2025 has yielded mixed results so far. Bitcoin has increased by 10% this year. Most altcoins have lagged behind, except for XRP, which has announced a modest increase of 12%. Meanwhile, Ethereum has decreased by 30%, breaking historical altcoin norms. Additionally, Bitcoin ETFs have attracted $1.9 billion in net inflows in just the first week of January 2025. These cash flows reinforce Bitcoin's dominance and demonstrate the ongoing confidence of institutions. Furthermore, this strength may delay the breakout of altcoin. However, the technical chart currently reflects a familiar setup. A breakout from the resistance line could rekindle the momentum of altcoin. Importantly, previous cycles have shown that altcoin tends to be bullish right after such moments. Therefore, many traders believe that the best time for altcoin has not yet arrived.