Bitcoin Dominance Breakdown Could Trigger Explosive Altcoin Bull Run

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Recent analysis from market analysts suggests that the cryptocurrency market may be approaching a transition period. The shared chart depicts a steep decline in Bitcoin dominance ($BTC.D).

The same is historically a signal of increased investor interest in altcoins. Drawing comparisons with previous cycles, the analysis raises the possibility of a major altcoin bull run.

Bitcoin Dominance Decline To Trigger an Altseason?

In a recent post on X, analyst Trader Tardigrade presented a technical chart indicating that Bitcoin dominance is undergoing a sharp decline.

The analysis points to a multi-year rising wedge pattern in $BTC.D that has recently broken to the downside.

In the past, similar breakdowns have been followed by rapid growth in the altcoin market. Such a phase is often referred to as an “altseason.”

The chart references two key periods in market history—2016/17 and 2019/21—when BTC dominance fell steeply after extended uptrends.

These periods coincided with sharp rises in the total altcoin market cap ($Total2), suggesting a cyclical rotation of capital from Bitcoin into altcoins.

Source: X

Tardigrade’s projection labels the upcoming phase as “Altseason 2025–2027.” It identifies a potential multi-year window where altcoins could outperform Bitcoin in market performance.

According to the analysis, the rising wedge pattern that formed over the last few years in BTC dominance broke downward.

This pattern, often viewed as a precursor to a reversal in trend, indicates a potential move away from Bitcoin dominance.

A steep arrow on the chart emphasizes the projected breakdown. Historical context provided through shaded green areas representing past altcoin cycles.

The data shared shows a strong correlation between the breakdown of BTC.D and the expansion of $Total2.

Each previous decline in Bitcoin dominance has aligned with increased inflows into alternative cryptocurrencies.

Altcoin Market Cap Reacting to Bitcoin’s Market Share

During previous altseasons, the altcoin market cap has consistently grown as Bitcoin’s share of the overall market dropped.

$Total2, a measure of the total market capitalization excluding Bitcoin, recorded accelerated growth during past dominance breakdowns.

This inverse relationship between BTC.D and $Total2 serves as a recurring trend in crypto market cycles.

Tardigrade’s chart includes these movements to draw parallels with the present setup.

Additionally, DefiWimar notes that altcoin capitalization could surge to $20 trillion in the coming months.

This would mark the beginning of what may be the largest alt season on record. Drawing parallels to previous cycles in 2017 and 2021, he suggests that select altcoins could outperform with returns far exceeding previous highs, potentially reaching up to 1000x.

Source: X

The projection shared by Trader Tardigrade refers to the expected phase as “Altseason 2025–2027.” The analyst outlined a potential timeline for altcoin market growth.

With Bitcoin dominance showing signs of reversing its multi-year upward trend, attention is gradually turning toward the altcoin sector.



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