- Bitcoin dominance has dropped, signaling potential weakness in BTC’s market control.
- Meanwhile, the altcoin market cap is gearing up for a breakout, suggesting an altcoin season could start in the second half of 2025.
The cryptocurrency market has been buzzing lately, but is the much-anticipated altcoin season finally about to kick off? After Bitcoin’s (BTC) impressive rally and a new all-time high in May, many investors are wondering whether altcoins will follow suit or remain in the shadows. The answer might lie in recent shifts in Bitcoin Dominance and the Altcoin Market Cap — two key indicators that hint at a potential altcoin boom in the latter half of 2025.
Bitcoin Dominance Shows Signs of Weakening
Bitcoin Dominance (BTCD), which measures Bitcoin’s share of the total crypto market capitalization, has been on a steady climb since mid-2022. However, May saw a notable dip in BTCD, dropping sharply after hitting resistance near 65%. This level is significant because it aligns with strong technical barriers like the 0.786 Fibonacci retracement.
Technical signals point to potential weakness ahead for Bitcoin dominance. The Relative Strength Index (RSI) shows bearish divergence, and the Moving Average Convergence Divergence (MACD) indicator is close to a bearish crossover. These signs suggest that Bitcoin’s grip on the market may loosen soon, potentially paving the way for altcoins to outperform.
Altcoin Market Cap Hints at a Breakout
While Bitcoin dominance falters, the Altcoin Market Cap (ALTCAP) is preparing for a breakout. Since April, ALTCAP has been in a five-wave upward pattern, currently navigating a consolidation phase inside a symmetrical triangle — a classic setup before a strong price move. The critical resistance to watch is around $1.26 trillion, and the current technical structure suggests this level could soon be breached.
Moreover, the RSI for altcoins has formed a hidden bullish divergence, signaling the trend’s continuation. If ALTCAP breaks out as expected, the crypto market could enter a highly bullish phase for altcoins, potentially igniting a full-blown altcoin season.
What Does This Mean for Investors?
The combination of falling Bitcoin dominance and an altcoin market cap ready to break resistance paints an exciting picture. Historically, when Bitcoin dominance declines and altcoins rally, the market enters an altcoin season — a period where altcoins significantly outperform Bitcoin.
If these charts are correct, investors should prepare for increased opportunities in altcoins throughout the second half of 2025. While Bitcoin remains the market leader, altcoins may finally reclaim the spotlight, offering fresh momentum and potential gains for diversified crypto portfolios.
