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Bitcoin Dominance Faces Key Reversal Signals

Bitcoin dominance shows bearish technical signs, hinting at a potential altcoin season ahead.

Isolde Verne August 9, 2025 - 8:30 AM

Bitcoin Dominance Faces Key Reversal Signals

Market

Bearish engulfing pattern on Bitcoin dominance monthly chart.
Bearish MACD cross and rejection from multi-year zone.
Similar setup preceded 2021 altseason surge.

Bitcoin Dominance Hits Multi-Year Resistance

Bitcoin dominance — the percentage of the total crypto market cap held by Bitcoin — has just touched a multi-year rejection zone. Technical indicators are flashing warning signs, with a bearish engulfing candle forming on the monthly chart.

This pattern, combined with a bearish MACD cross, suggests that Bitcoin’s market share could be entering a downward phase. Historically, such moves have been the signal for altcoins to outperform.

Technical Setup Mirrors 2021 Altseason

The current chart setup mirrors what happened before the 2021 altseason, when altcoins surged while Bitcoin dominance fell sharply. At that time, the market saw a rotation of capital from Bitcoin into a variety of altcoins, leading to explosive gains across the board.

The similarity in technical structure — rejection from long-term resistance, momentum shift in MACD, and a bearish engulfing monthly close — has analysts speculating that the market could be preparing for another wave of altcoin rallies.

BITCOIN DOMINANCE JUST CRACKED.

– Bearish engulfing (monthly)
– Bearish MACD cross
– Multi-year rejection zone hit

This is the exact same setup before the 2021 altseason eruption.
Alts didn’t wait. They ran.

Altseason doesn’t warn you. It ambushes you.

Don’t get left behind. pic.twitter.com/mC268ih8MT
— Merlijn The Trader (@MerlijnTrader) August 8, 2025

Altseason Often Comes Without Warning

One important lesson from past cycles is that altseason rarely announces itself. Once Bitcoin dominance starts to slide, capital flows can shift rapidly. In 2021, many traders missed the initial altcoin breakout because the market moved aggressively within days.

If the current trend continues, we could see a similar “ambush” scenario where altcoins begin to run without much warning. For traders, this means keeping an eye on dominance charts and market volume trends could be crucial in the coming weeks.

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