Altcoin Dominance Signals a Clear Reversal as Bitcoin Cools Off

Altcoin dominance forms a double bottom at 9% with bullish divergence, signaling a strong reversal after months of correction.

Bitcoin dominance sits above 61% in overbought territory, historically preceding major altcoin seasons and capital rotation.

Oscillator trends and increased volume suggest altcoins are gaining traction as BTC dominance shows signs of topping near 63%.

Altcoins are showing strong signs of life after a prolonged period of correction. The latest altcoin dominance data indicates a double bottom near 9.00%, forming a bullish reversal structure. This movement comes as Bitcoin dominance (BTC.D) trades in overbought territory near 61.50%. Historically, such overbought conditions have preceded major altcoin rallies. Crypto analyst Javon Marks eyes a potential breakout in altcoins. The setup mirrors the early phases of previous alt-seasons when capital shifted away from Bitcoin into alternative cryptocurrencies.

Bullish Divergence Forms at Key Support

From July to September 2024, altcoin dominance peaked near 13.50%. After that, it entered a sharp downtrend through early 2025. However, by March 2025, dominance found support around 9.00%. A double bottom formed at that zone, signaling exhaustion in the downtrend. Moreover, oscillator readings created a Class A bullish divergence. While dominance made lower lows, the oscillator had higher lows. This pattern typically precedes strong reversal phases.

Source: Javon Marks

Consequently, April and May 2025 brought stabilization. The dominance chart also broke above short-term resistance levels, hinting at a fresh uptrend. Additionally, volume increased during the bottom, suggesting rising accumulation.

Bitcoin Dominance Stalls as Altcoin Season Nears

On the other hand, Bitcoin dominance remains elevated, trading above 61%. Each previous rally into overbought zones sparked altcoin seasons. The oscillator also shows historical turning points during such conditions. Notably, the red arrows on the long-term BTC.D chart align with major altcoin rallies.

Hence, a pullback in Bitcoin’s dominance could soon trigger capital inflow into altcoins. Historically, these shifts occur in three-to-four-year cycles. The last alt-season began in 2021 when BTC.D fell from 73% to 40%

Source: Javon Marks

Current positioning mirrors that cycle. Moreover, BTC dominance has already shown resistance near 63%, indicating possible exhaustion. A decline from these levels could reinforce altcoin momentum.

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