A new analysis by crypto trader Michaël van de Poppe suggests that Bitcoin’s recent dominance surge could be nearing a peak, with technical indicators pointing to a potential short-term reversal.
The warning comes as a strong bearish divergence begins to appear on the BTC dominance chart—similar to conditions seen during the last altcoin rally in November 2024.
Van de Poppe highlights that the Relative Strength Index (RSI), a popular momentum indicator, is failing to confirm Bitcoin dominance’s latest highs, signaling weakening upward momentum. Historically, such divergences have preceded periods where Bitcoin cedes market share to altcoins, igniting speculative rallies across the broader crypto market.
The chart shared in the post shows two notable divergence points:
- A previous bearish divergence in late 2024, which preceded a notable dip in Bitcoin dominance and a corresponding altcoin breakout.
- A current emerging divergence, with RSI flattening despite new highs in BTC dominance—hinting at a repeat of past cycles.
However, Van de Poppe cautions that the reversal isn’t confirmed yet. A break below a specific confirmation level on the chart would provide stronger evidence that the top is in for Bitcoin’s dominance.
What This Could Mean for the Market:
- Altcoin traders may find renewed opportunities if Bitcoin loses dominance.
- Short-term volatility is likely as traders rotate capital between BTC and smaller assets.
- Market sentiment could shift from Bitcoin accumulation to higher-risk speculative bets.
While the signal is not definitive yet, historical patterns suggest that altcoin season could be on the horizon if confirmation levels are breached.
As of now, investors are closely watching this divergence for signs of whether the trend will repeat—or if Bitcoin dominance will continue climbing in defiance of bearish technicals.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-chart-flashes-signal-seen-before-altcoin-surge/