Shocking 6.3% Bitcoin Dominance Drop Hints at Altseason Boom

Key Points

• Bitcoin Dominance fell 6.30%, breaking a 3-year uptrend.
• A bearish MACD cross signals a possible trend reversal.
• Analysts say the setup mirrors the 2021 Altseason.
• BTC.D support zone at 60–61% may delay full rotation.

Bitcoin Dominance,  the percentage of the total crypto market cap held by Bitcoin, has dropped sharply by 6.3%, marking one of the steepest declines in recent years.

This sudden fall has broken a major three-year uptrend, raising strong speculation about a possible Altseason, a market phase where altcoins outperform Bitcoin.

BITCOIN DOMINANCE BEARISH CROSS 🚨

Bitcoin dominance has formed a bearish cross on 3W timeframe.

Also, Bitcoin dominance has lost its 3-year uptrend. This is the biggest sign of an Altseason and upcoming parabolic pump pic.twitter.com/LuRHZfheZB

— Ash Crypto (@Ashcryptoreal) July 28, 2025

According to top analysts, this breakdown isn’t just another dip. It’s backed by solid technical signals, including a bearish MACD crossover on the 3-week chart — often seen as a warning sign of deeper trend shifts.

Veteran trader Ash Crypto commented, “Bitcoin dominance has lost its 3-year uptrend. This is the biggest sign of an Altseason and an upcoming parabolic pump.”

BITCOIN DOMINANCE BEARISH CROSS 🚨

Bitcoin dominance has formed a bearish cross on 3W timeframe.

Also, Bitcoin dominance has lost its 3-year uptrend. This is the biggest sign of an Altseason and upcoming parabolic pump pic.twitter.com/LuRHZfheZB

— Ash Crypto (@Ashcryptoreal) July 28, 2025

Chart watchers have also pointed out that the current setup looks eerily similar to what happened in 2021, just before a massive rally in altcoins. Back then, Bitcoin lost dominance, and money flowed into coins like Ethereum, Solana, and Cardano.

BTC.D is now reportedly in “Phase 4” — the breakdown stage, which typically signals that Bitcoin’s market share is being redistributed across the broader crypto landscape. This breakdown is not just about Bitcoin falling; it’s about altcoins rising.

BTC.D has fallen more than 6.30% in 1 month. Source: TradingView – Techtoken

And signs of life in altcoins are already visible. For example, the Vine token surged over 400% in July, capturing attention during this BTC.D decline and showing how quickly capital can rotate when momentum shifts.

Ethereum Likely to Lead the Next Wave

One of the strongest signals of a possible Altseason lies in the ETH/BTC pair, which has been gaining momentum.

This metric compares Ethereum’s strength directly against Bitcoin. And recently, Ethereum has started to outperform, suggesting a capital shift from BTC to ETH and beyond.

Crypto investor Ted believes the trend is clear: “In the next 3–6 months, Ethereum and several altcoins could see significant growth.” He also cautions that the market may experience short-term corrections aimed at shaking out weak hands before the next big move.

THE 2021 PLAYBOOK IS UNFOLDING.

Bitcoin dominance just entered Phase 4.
Next step? Breakdown and full-blown rotation.

We’ve seen this exact movie in 2021.
Spoiler alert: Altcoins stole the show.

Are you in position or just watching the rerun? pic.twitter.com/qUdVaXC3j7

— Merlijn The Trader (@MerlijnTrader) July 28, 2025

This capital rotation isn’t only about Ethereum. As BTC.D weakens, other altcoins, especially mid and low-cap tokens, may start gaining traction.

Traders expect funds to flow into coins that have been consolidating while Bitcoin has held the spotlight over the last few months.

The rise of PancakeSwap’s CAKE token, which has recently seen increasing volume and staking activity, is another strong example of investor interest shifting to non-Bitcoin opportunities.

ETH/BTC is going up only. Source: Ted – Techtoken

Historical data support this trend. In past cycles, a significant drop in Bitcoin Dominance has typically preceded an altcoin market rally, often delivering massive returns for early movers.

Meanwhile, Ethereum’s fundamentals continue to strengthen. With its 10-year uptime milestone recently celebrated, Ethereum’s reliability and ecosystem growth reinforce its leadership potential in any upcoming Altseason.

#Bitcoin dominance is dropping hard. 📉

While ETH/BTC is going uponly.

Don’t be distracted by short-term corrections, as they are just to scare you.

In the next 3-6 months, ETH and alts are going way higher. pic.twitter.com/neGZAK2rWS

— Ted (@TedPillows) July 28, 2025

Key Support Zone Could Delay Full Altseason

While the market is buzzing with excitement, not everyone agrees that Altseason is already here.

Analyst Crypto Candy points out that BTC.D is still sitting near the critical 60–61% support zone. This zone has acted as a floor in previous cycles. If it holds again, Bitcoin might maintain dominance a bit longer, pushing back the full altcoin breakout.

Bitcoin Dominance Chart. Source: Crypto Candy/X – Techtoken

“As long as the 60–61% zone holds, we may not see proper momentum in alts,” said Crypto Candy. “In the meantime, we may witness slow movement and retracement in altcoins.”

This suggests that while the long-term trend may be turning in favor of altcoins, the shift won’t happen overnight. Traders and investors are advised to stay cautious and watch for confirmation signals before making major allocation changes.

BTC.D

Bitcoin dominance bounced off the demand zone, then dropped to the zone and is now reversing from the zone again. As long as the 60-61% zone holds, we may not see any proper momentum in alts. Also in the meantime, we may see slow movement and retracement on alts.#btcd… pic.twitter.com/10ramAXWuJ

— Crypto Candy🔥💎 (@cryptocandy24x) July 28, 2025

Indicators to monitor in the coming weeks include:

• Continued weakening of BTC.D below the 60% zone

• ETH/BTC pair is maintaining upward momentum

• Rising trading volumes in altcoin pairs

• Shifts in capital inflow from Bitcoin to alternative assets

Some experts recommend a balanced approach, keeping exposure to Bitcoin while gradually rotating into high-potential altcoins. The market appears to be on the verge of change, but timing will be everything.

While this shift unfolds, regulatory developments remain an important backdrop. The ongoing Tornado Cash trial has reminded investors how government actions can influence sentiment and market direction, especially in DeFi and privacy-focused tokens.

Another sign of shifting investor preferences can be seen in blue-chip NFTs like CryptoPunks, where floor prices have started to rebound, often signaling broader risk-on behavior across the crypto ecosystem.