01 August 2025
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According to several analysts, Bitcoin is beginning to lose its dominance over the rest of the crypto market. As reported by Finbold, pseudonymous analyst Master Ananda points to technical indicators that suggest a continued downward trend. A break of the long-term uptrend at the highest weekly trading volume since February 2021 opens the door for altcoins to grow.
Bitcoin dominance faces strong resistance
The dominance of Bitcoin currently stands at 61.458%, following a sharp rejection at the 66% level, which proved to be strong resistance, according to data from TradingView. This failed breakout attempt has formed a pattern that often signals a weakening trend.
Key Fibonacci levels are located at 61.65% and 60.30%. If Bitcoin fails to climb back above these levels, there is a risk of a drop below 58.94%, which could trigger a further fall toward 57.01% or even 47.44%. These levels could provide room for altcoins to rise.
Ananda recalled that a similar development occurred in February 2021, when a drop in Bitcoin dominance preceded a strong altcoin season. He believes current technical conditions are creating a similar scenario.
Has the altcoin season already begun?
Despite the drop in Bitcoin dominance, which remains the highest in 2025, the altcoin season has not yet fully materialized. According to the altcoin season index from Blockchain Center, the index is only at 41 out of 100, indicating that most altcoins are still underperforming compared to Bitcoin.
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Bitcoin may enter consolidation phase as altcoins gain strength
According to Michaël van de Poppe, a well-known crypto analyst, Bitcoin will likely enter a consolidation phase. In his commentary, he noted that the Bitcoin dominance chart shows clear signs of downward pressure, with persistent negative divergence pointing to a weakening of its dominance over altcoins. Poppe’s analysis confirms that Bitcoin’s technical indicators are weakening, especially compared to altcoin performance.
The #Bitcoin dominance chart is still eager to continue to go down more, due to the strong bearish divergence.
It doesn’t mean that we can’t have hick-ups back upwards in which #Altcoins correct, but the trend has strongly changed. pic.twitter.com/vHAHvKO2dO
— Michaël van de Poppe (@CryptoMichNL) July 28, 2025
While Bitcoin slows down, altcoins may get a second wind. Historical technical indicators suggest that the market is preparing for a new phase of capital rotation in favor of alternative cryptocurrencies.
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