Bitcoin Dominance Overbought: Altseason Incoming?
BTC.D sits in overbought territory—classic setup for altcoin season! We explore past signals, key levels, and strategies for the next altseason.
- BTC.D entering overbought zone often signals upcoming altcoin rally
- Historical peaks above ~64–65% preceded significant alt-season shifts
- Watch for BTC.D drop below support (~60%) to confirm altseason start
Bitcoin Dominance (BTC.D) measures Bitcoin’s market cap as a share of the total crypto market. Currently, BTC.D has climbed into overbought territory—generally above 64–65%, with RSI readings nearing 80—levels that have historically preceded sharp declines. This setup suggests that a major rotation into altcoins may be near.
Historical Patterns: Peaks That Preceded Alt-Seasons
In previous cycles, when BTC.D surpassed 64–65%, it often marked the peak of Bitcoin’s market dominance. After these peaks, altcoins typically gained traction. For example:
- In early 2021 and mid-2017, dominance levels above 64% led to powerful altcoin surges.
- Following these peaks, BTC.D fell back to 55–60%, while coins like Ethereum, Solana, and others saw massive rallies.
This pattern has repeated across cycles—overbought BTC.D leads, and then capital shifts to altcoins, triggering alt-season.
Technical Outlook: What to Monitor
| Level | Significance |
|---|---|
| ~65% Resistance | Overbought trigger zone—historically marks peak BTC.D before reversal |
| Below ~60% | Key breakout zone—drop below signals start of alt-season |
| RSI ~80 | Indicates dominance exhaustion; reversal likely |
Investors are watching closely for BTC.D to break below support around 60%. Such a move often opens the floodgates for capital to flow into altcoins.
Strategy: How to Prepare for Altseason
1. Monitor BTC.D closely
Altseason tends to begin once BTC.D starts dropping from these overbought levels.
2. Watch technical indicators
Bearish divergences and RSI falling from 80 can signal the shift to alts.
3. Prepare for rotation
As Bitcoin’s dominance fades, altcoins often gain momentum. Identify strong projects with solid fundamentals and enter during early signs of capital rotation.
4. Plan your exits
Set clear take-profit levels, as alt-seasons are often sharp but short-lived. Targets around BTC.D returning to 55–60% can be used as exit signals.
Final Word
Bitcoin Dominance is flashing a familiar warning: it’s overbought and historically ripe for reversal. If the trend holds, a new wave of capital could flow into altcoins—making this a prime moment to get prepared. Stay focused, and get ready for a potential alt-season breakout.
Read Also :
- Bank of Canada Cuts Interest Rate to 2.50%
- SBI Shinsei Joins Tokenized Cross-Border Trial
- BetFury is at SBC Summit Lisbon 2025: Affiliate Growth in Focus
- Toncoin and Shiba Inu Falter, While BlockDAG’s 20 Confirmed Listings Ignite Next Crypto to Explode Buzz
- China Bans Companies from Buying Nvidia Chips
