Bitcoin dominance struggles as altcoins poised for potential surge

Interest is growing around a potential altcoin season as Bitcoin's (CRYPTO:BTC) dominance (BTC.D) begins to show signs of weakening.

Currently sitting at 56.91%, BTC.D has encountered significant resistance, failing to break out of a rising wedge pattern earlier this month.

This is often seen as a bearish signal, suggesting that Bitcoin’s market control may be peaking or starting to decline, potentially opening the door for altcoins to capture a larger market share.

With Bitcoin facing consistent resistance around the $60,000 level, analysts believe these conditions could pave the way for a notable shift in favor of altcoins.

Since August 5, the TOTAL2 index, which tracks the market capitalisation of the top 125 altcoins, has increased by 2%, reaching $870 billion.

This growth has coincided with a decline in Bitcoin’s dominance, further fueling the discussion about an impending altcoin season.

Market analysts like Chris AI have observed that Bitcoin’s dominance has been halted by a strong downward trend, preventing a breakout above the wedge.

This resistance might indicate a weakening in Bitcoin’s hold on the market, increasing the likelihood that altcoins could gain momentum.

Another analyst, SenseiBR, suggested that the BTC.D could be forming an "ending diagonal" pattern, a technical indicator often associated with market shifts.

If confirmed, this pattern could signal that Bitcoin’s dominance is nearing an end, setting the stage for a potential rally in altcoins.

However, it is important to note that an altcoin season typically begins when 75% or more of the top 50 altcoins outperform Bitcoin over a 90-day period.

At present, only 28% of altcoins have surpassed Bitcoin's performance, indicating that the market has not yet fully transitioned.

For a true altcoin season to take hold, the TOTAL2 index would need to break above its current resistance levels.

If this occurs, it would confirm a stronger shift towards altcoins, suggesting a decline in Bitcoin’s dominance and opening the door for broader growth in the cryptocurrency market.