The altcoin season signal is flashing as Bitcoin dominance faces resistance and Ethereum shows strong support against Bitcoin. Traders are closely monitoring technical patterns suggesting an imminent market rotation.
Key indicators suggest a potential shift in market dynamics:
- •Bitcoin dominance rejects macro resistance, signaling capital rotation from Bitcoin to altcoins, preparing the market for broad altcoin outperformance.
- •Ethereum’s five-year support against Bitcoin positions ETH to outperform, driving early altcoin momentum across large-cap digital assets.
- •Combined BTC.D rejection and ETH/BTC support form a high-probability setup, encouraging rotation into high-cap followed by mid- and small-cap altcoins.
Bitcoin Dominance Faces Macro Resistance
Bitcoin dominance (BTC.D) measures the share of Bitcoin in total crypto market capitalization. The current chart shows BTC.D approaching a key resistance zone between 55–60%. Historical data indicates Bitcoin has struggled to break this level in prior cycles.
Merlijn The Trader highlighted this movement on Twitter, noting, “$BTC.D rejected from macro resistance.” The rejection indicates capital may start shifting from Bitcoin to altcoins. A downward trend in BTC.D often precedes broad altcoin performance surges.
Technical patterns suggest BTC.D is likely to fall further. Traders observing this resistance zone anticipate Bitcoin’s share reduction could fuel altcoin momentum. The red arrow on the chart emphasizes this potential decline.
Ethereum Shows Support Against Bitcoin
Ethereum's performance relative to Bitcoin, ETH/BTC, has reached its 5-year support zone. The cyan line in the chart below reflects this bottoming pattern, which has historically preceded strong Ethereum outperformance.
Merlijn The Trader said that ETH/BTC reached long-term support, which sets up an important inflection point: each time Ethereum has approached this level, traders have expected the asset to outperform Bitcoin in the weeks that follow.
This support suggests Ethereum is positioned to lead the altcoin growth. By monitoring ETH/BTC trends, investors can gauge the potential for early altcoin market rotation. The green rectangle in the chart signals this key technical area.
Altcoin Season Signal Indicates Rotation
The combination of BTC.D resistance rejection and ETH/BTC support forms a high-probability setup for altcoins. Capital flowing out of Bitcoin and Ethereum’s positioning both point toward increased altcoin activity.
The chart illustrates this market condition as a “cheat code” for timing. Traders can identify the fuel, represented by Ethereum support, and the ignition, indicated by Bitcoin dominance rejection.
Market trends suggest initial rotation may focus on high-cap altcoins, followed by mid- and small-cap tokens as momentum accelerates. The green arrow on the chart represents expected altcoin outperformance, signaling potential growth opportunities across the sector.