Bitcoin Dominance Breakdown May Signal Liquidity Shift and Building Altcoin Season

  • BTC.D break confirms capital rotation into altcoins

  • Altcoin season momentum is rising, with alt indexes approaching recognized altseason thresholds.

  • Trading volumes and on-chain flows show liquidity shifting from Bitcoin to altcoins, creating short-term opportunities.

Bitcoin dominance drops below key support, sparking altcoin season; learn where liquidity is rotating and how investors can position for emerging altcoin gains.

Bitcoin dominance drops below key support, triggering altcoin season as liquidity shifts into altcoins and sets the stage for multi-cap rallies.

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Altcoin season is accelerating as Bitcoin dominance (BTC.D) slips below a long-term rising trendline. This breakdown suggests liquidity is rotating into altcoins, and historical market cycles show alts frequently outperform Bitcoin during such rotations.

Bitcoin dominance broke a clear rising trendline that had supported BTC.D for nearly two years. The trendline break is a technical confirmation of capital shifting, and it often precedes periods when altcoins gain relative market share versus Bitcoin.

Capital rotation occurs when investors reduce Bitcoin exposure and allocate to altcoins, increasing altcoin trading volumes and price momentum. Market indicators, including altcoin season indexes and on-chain flow metrics, show rising alt activity.

Market commentator Merlijn The Trader noted the breakdown and stated that rotation has arrived. Plain-text source mentions: Merlijn The Trader (Twitter). Historical patterns and index readings (CoinMarketCap altcoin indexes) support the interpretation that reduced BTC dominance often leads to multi-stage alt rallies.


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Source: https://en.coinotag.com/bitcoin-dominance-breakdown-may-signal-liquidity-shift-and-building-altcoin-season/