Bitcoin is holding above $113,800 after nearly doubling in price over the past year, but recent market data shows a shift in momentum that could benefit altcoins in the weeks ahead.
On-chain analysis and technical indicators are pointing to growing pressure on Bitcoin dominance, while large holders appear to be exiting their positions.
Whales Reduce Their Bitcoin Holdings
Data from CryptoQuant, shared by analyst Crypto Rover, reveals a steep decline in balances held by whales – wallets containing between 1,000 and 10,000 BTC. The 30-day balance change metric has fallen sharply, marking one of the most aggressive sell-offs in 2025. Historically, whale activity has acted as an early warning signal for broader market shifts, making this trend particularly significant.
The sell-off comes even as Bitcoin’s market capitalization remains steady at $2.26 trillion, suggesting that retail and institutional demand may be absorbing some of the selling pressure. However, the decline in whale balances has raised concerns about near-term downside risks for Bitcoin.
Bearish Patterns in BTC Dominance
Alongside whale selling, technical charts show Bitcoin’s market dominance forming bearish continuation structures such as a bear flag and bear pennant. These patterns typically resolve with further downside, implying that capital could rotate away from Bitcoin and into altcoins. Crypto Rover noted that if this breakdown occurs, it could trigger a flood of liquidity into alternative cryptocurrencies, a move often associated with the onset of an altseason.
Despite these bearish signals for dominance, Bitcoin’s spot price remains resilient. On the 2-hour chart, the Relative Strength Index (RSI) is sitting above 64, indicating momentum is still in bullish territory. The MACD is also showing upward momentum, reinforcing the case for continued short-term stability.
What Comes Next?
The conflicting signals between whale behavior and price action leave traders at a crossroads. If Bitcoin dominance breaks lower, major altcoins could benefit from strong inflows. On the other hand, sustained whale selling could eventually catch up with Bitcoin’s price, limiting its upside potential.
With the Federal Reserve’s upcoming rate decision expected to influence broader risk markets, crypto traders are preparing for heightened volatility. Whether this marks the start of a new altcoin cycle or simply a pause before Bitcoin resumes its climb will depend on how these signals unfold in the coming weeks.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-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 approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/altcoin-season-alert-bitcoin-whales-begin-massive-sell-off/