Altcoin Market Breakout Looms as Bitcoin Dominance Weakens
Technical indicators and weakening Bitcoin dominance suggest a major Altcoin market breakout cycle is imminent after a prolonged accumulation phase.Summary
The global crypto market is recovering, with total capitalization reaching $4 trillion, but attention is shifting from Bitcoin to altcoins, signaling potential liquidity rotation. Analysts note that current technical indicators, such as MACD bullish divergence and RSI in the oversold zone, resemble conditions preceding the strong uptrends of late 2019/early 2020. Furthermore, on-chain data suggests the altcoin accumulation phase is intact, possibly concluding the 'manipulation phase.' A key factor supporting this outlook is the potential weakening of Bitcoin Dominance (BTC.D), which is retesting resistance around 59%; a rejection here could trigger significant capital flow into altcoins. Confirmation would involve BTC.D closing below 57% while the ETH/BTC ratio rises above 0.041. The TOTAL2 chart (altcoin market cap excluding BTC) is also testing a long-term ascending trendline, providing a potential launchpad for a widespread breakout, despite current low sentiment reflected in the Altcoin Season Index.
(Source：BeInCrypto)