- Bitcoin’s dominance weakens and signals a possible capital shift to old coins. Technical patterns also show a trend reversal.
- Altcoin charts show outbreak formations that indicate growing dynamics and a potential market-wide rally.
The crypto market shows the first signs of a possible rotation towards old coins, since the dominance of Bitcoin wanes and the relative strength shifts to assets with a lower market capitalization. After several months of the under -performance of old coins, several chart patterns and indicators now indicate that the market mood could change.
The decline in Bitcoin Dominance Rate (BTCD), emerging bullish signals from Altcoin relative charts and an outbreak of the entire Altcoin market capitalization together have aroused another interest in what could be the beginning of a new altcoin cycle.
Bitcoin’s market share has increased since August 2022, with the BTCD moving in an ascending channel for almost two years. This trend remained until this week largely intact. The data show a decline in the BTCD by 2 %, whereby the index is now rejected from the upper resistance limit of the channel near the long-term 65 %mark. The youngest weekly candle closed Bärisch, which indicates a break or a possible reverse of the Bitcoin strength compared to the wider market.
The rejection of this level of resistance coincides with the 0.618 fibonacci retracement at around 59.7%, an important technical goal. Although the MACD indicator still stays above the signal line, the RSI has shown a bearish divergence, which is often a harbinger of a downward movement. If the Bitcoin dominance continues to drop, this opens up the possibility that capital will be switched into old coins.
Others/BTC chart signals relaxation
The chart of the old coins compared to Bitcoin (Others/BTC) has declined since December 2024 and forms a five -wave downward pattern. According to analysts, this decline ended with a diagonal, a structure that often signals the last section of a correction. The diagram is now just below the 8.15 %mark, which is considered the decisive outbreak.
An increase in this brand would mean the first major reversal in months and could target the range of 9.5 % -10 %. It is noteworthy that the RSI and the MACD have formed interest bullies on this diagram. These patterns usually indicate a declining sales pressure and the potential for a trend reversal, which indicates that old coins could now begin to surpass Bitcoin on a relative basis.
Altcoin market capitalization is approaching the outbreak zone
The chart of the Altcoin market capitalization (Altcap) shows an encouraging development. After a five -wave decline, Altcap broke out of a descending wedge pattern, a formation that is known for its bullish implications. Since then, the course has launched a five -wave upward movement, with the last wave being underway.
Altcap is now approaching the resistance zone of $ 1.25 trillion. A confirmed outbreak over this level could confirm the current trend structure and lead to further upward pressure. Regardless of whether the next movement develops as an impulsive five-wave rally or as a corrective ABC structure, the common result in both cases indicates the formation of new local highs.
Altcoins have stayed behind Bitcoin throughout the current cycle, with important assets such as Ethereum having no new all -time high. Ethereum, for example, fell 65 % of his cycle high, while Bitcoin fell only 31 % during its correction.
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