Altseason May Explode as Dominance Hits Support: Is an Altcoin Rally Near?

The altseason narrative gained more power this week, as the dominance of Bitcoin collapsed and experts focused on altcoin bullish configurations. Technical indicators suggest that altcoins are about to enter another breakout period like previous bullish cycles. With the rotation of the capital out of Bitcoin, the market structures imply that an altcoin rally is coming.

Altseason Begins as Bitcoin Dominance Falters

According to CryptoELITES, Bitcoin has broken below a key rising support and retested it from the underside, indicating that dominance could shift to altcoins. The steep uptrend started at the beginning of 2023 when the support line was broken, and consolidation occurred in the lower highs.

This zone, marked as a “Bottom,” aligned with previous periods that preceded large altcoin rallies.

The analysis also featured an upward-curving arrow labeled “Altcoin Season,” projecting a potential exponential rise. Historically, these transitions have triggered strong rotations into altcoins.

More so, the analyst’s message, “It’s no longer Bitcoin’s turn,” reflected the growing sentiment that altseason has already started. With Bitcoin appearing range-bound and failing to make new highs, altcoins are gaining ground as traders hunt for higher returns.

Fractal Pattern Reveals Altcoin Rally May Be Repeating

Additionally, another analyst shared a chart which spans several years, illustrating a repeating pattern that connects accumulation and breakout zones. The accumulation, none of which was characterized by flat support and higher lows, has moved to the Banana Zone.

This area was earlier provoking the fast increases in 2020 and at the beginning of 2021.

So the same formation is currently forming, where the price has reached the trendline’s support and rebounded.  The new retest in 2025 repeats the trend observed in the previous altseason cycles.

Such fractal patterns indicate that the altcoins may return to a parabolic cycle. Every previous banana zone took a few months and sparked altcoin prices to multi-year highs.

Dominance Metrics Support a Shift Toward Altcoins

In the meantime, GalaxyTrading analyzed the Others dominance chart, which has been showing altcoins not in the top 10, and the bounce here was on the 6.66% Fibonacci level. This is the zone when, historically, the dominance of altcoins starts growing.

The analyst said that though it is unclear whether this level will be sustained, the risk-reward of upside trades is improving.

Importantly, the 6.66% level coincided with the 0.786 Fibonacci retracement, a key technical confluence that often signals trend reversals.  If the dominance persists and begins to increase, it would confirm the growing investor interest in the middle- and low-capital altcoins. This influx could be due to the realization of profit in Bitcoin or a future expectation of a higher reward in less overvalued assets.

This rotation has historically fuelled soaring increases in tokens that have lagged during Bitcoin booms. As the sentiment shifts and on-chain activity indicates that the early accumulation is underway, dominance trends indicate that altcoins are ready to stage a comeback.

USDT Dominance Drop Could Accelerate Altcoin Expansion

Further evidence comes from Moustache’s chart of USDT dominance, which continues to trend downward. He identified a powerful downward slope line that has served as a stall point from 2022 to 2025. The recent rejection of this trendline means that the dominance of stablecoins has decreased. Notably, the traders are moving to active positions with USDT.

As USDT dominance decreases, capital tends to flow into altcoins, particularly during the early stages of altseason. Horizontal support that has been upheld since 2021 can also be seen in the chart. With the structure holding and trendline acting as a ceiling, this setup strengthens the altseason thesis.

Moreover, the rejection of USDT dominance was in harmony with previous price actions in altcoin and Bitcoin dominance charts. This convergence in the various market structures forms a complete technical argument for altcoin growth. Historically, when traders sell off stablecoins, this has frequently translated into liquidity-fueled rallies throughout the broader range of altcoins.