Bitcoin’s price is holding steady, but its market dominance is slipping. Analysts are focusing less on Bitcoin’s price and more on its shrinking market share, suggesting altcoins might be ready to shine. One analyst’s recent post highlighted nine factors supporting this altcoin season theory.
Technical Signals: Bitcoin’s Dominance Fades
The analyst points to June 27th, 2025, as a significant date (apparently due to some numerological significance related to “434” and a new moon), when Bitcoin dominance peaked at exactly 66%. This coincided with a key Fibonacci retracement level, often seen as a potential reversal point. Several technical indicators are flashing red for Bitcoin:
- Overbought RSI: Bitcoin dominance hit its highest monthly Relative Strength Index (RSI) ever, indicating an overbought condition and a potential crash.
- Bearish MACD: The Moving Average Convergence Divergence (MACD) has turned bearish, with the histogram negative and the faster line below the slower line – classic signs of a downtrend.
- Broken Support: A key diagonal support line, holding strong throughout 2024 and 2025, has been broken, suggesting a structural breakdown.
Fundamental Factors: Altcoins Gaining Momentum
Beyond technical analysis, fundamental factors also favor altcoins:
- Upcoming Altcoin Spot ETFs: The potential approval of spot ETFs for altcoins like Ethereum, XRP, and Solana could significantly shift institutional investment away from Bitcoin. This could mirror the massive inflows into Bitcoin after the approval of Bitcoin spot ETFs.
- Potential Fed Rate Cuts: Anticipated Federal Reserve rate cuts are generally considered more bullish for altcoins than for Bitcoin.
- XRP/BTC and ETH/BTC Reversals: Both XRP/BTC and ETH/BTC trading pairs show signs of reversal from critical levels. XRP/BTC has repeatedly failed to break through a key resistance level, suggesting a potential breakout could signal a major shift towards XRP. ETH/BTC is showing a “rounded bottom” pattern, indicating a potential recovery from undervaluation.
In short, a combination of technical and fundamental factors suggests a possible shift in market power, with altcoins potentially poised for a significant rally.
