Bitcoin Dominance Near Explosive Peak Signals Imminent Altcoin Rally

Bitcoin Dominance holds at an explosive overbought level, indicating that capital rotation into altcoins could trigger a powerful market shift soon.

Bearish divergence on key technical indicators reveals weakening momentum despite rising Bitcoin Dominance, suggesting an upcoming market reversal.

Historical BTC dominance peaks led to sharp drops and massive altcoin rallies, pointing to a potentially huge altseason on the horizon.

Bitcoin dominance has remained in historically overbought territory for over a year, signaling a potential shift in market momentum towards altcoins.

Extended Overbought Zone Raises Attention

Bitcoin dominance (BTC.D), which tracks Bitcoin’s share of the overall cryptocurrency market capitalization, has displayed prolonged strength. According to a recent tweet by analyst JAVONMARKS, this pattern mirrors past cycles that preceded notable altcoin rallies.

Source: JavonMarks

Three key historical peaks in Bitcoin dominance were marked by sharp declines, each followed by robust altcoin market activity. The accompanying chart shows red arrows on a lower oscillator that coincided with these turning points. A similar overbought condition is now visible, suggesting a potential repeat of the cycle.

Technical indicators also reflect this setup. A MACD-style oscillator reveals a red zone that points to bearish divergence—indicating weakening momentum while dominance levels push higher. This kind of divergence has historically signaled reversals.

Current Structure Shows Signs of Weakness

Over the past year, BTC.D has formed a tight ascending structure. According to JAVONMARKS, such formations typically precede a downward move. Despite new highs in dominance, underlying momentum appears to be fading.

The oscillator used in the analysis continues to show bearish divergence. This divergence often signals that Bitcoin's control over market liquidity may be weakening. If this trend continues, capital rotation into altcoins could accelerate.

While BTC has maintained dominance, the lack of a clear altseason during this phase adds weight to the anticipation of an upcoming shift. The market may be positioned for movement, with altcoins waiting for liquidity to cycle in their favor.

Altcoin Market Eyes Long-Awaited Turn

With Bitcoin dominance staying high for an extended period, suppressed altcoin momentum may soon surface. If BTC.D declines, this could unleash capital flow into alternative cryptocurrencies.

As JAVONMARKS notes, previous breakdowns in BTC.D sparked notable altcoin runs. The extended wait has created expectations of a larger rotation once momentum reverses. Investors may now be watching closely for technical confirmation.

He concludes that current dominance levels are not just elevated but stretched, and the altcoin market appears poised for attention if history repeats.

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