Bitcoin Dominance Peaks as Altcoin Metrics Heat Up

• Bitcoin dominance reached 65% on May 8, triggering daily, weekly, and monthly DeMark topping signals.
• CoinGlass data shows rising altcoin futures volume and funding rates, suggesting capital shift from Bitcoin to altcoins.
• Ethereum price surged 9.1% weekly, while altcoin season index moved past 50, indicating increasing altcoin strength.

Bitcoin (BTC) holds strong above $102,800, up 4.75% daily and well above the $100,000 mark, even as its market dominance meets key resistance near 65%. 

Multiple DeMark indicators — daily, weekly, and monthly — now show topping patterns, according to investor Raoul Pal. These technical indicators are often used to identify exhaustion in market trends.

Raoul Pal: Bitcoin Dominance Shows Topping Signals via DeMark Indicators

The current dominance level remains lower than the 2021 peak and even further below the 2017 high. 

This pattern of lower highs could signal a turning point. Market analysts view this as a potential early sign that capital may rotate from Bitcoin to altcoins.

Banana Zone Speculation Returns With Altcoin Interest Rising

The term “Banana Zone” refers to a period where altcoins experience rapid gains while Bitcoin stalls or consolidates. If Bitcoin dominance continues to decline, altcoins may enter this accelerated growth phase. Raoul Pal noted that such a setup would match previous Banana Zone cycles, where BTC weakens in relative dominance as altcoins explode in value.

As of now, altcoin market capitalization remains suppressed. However, on-chain signals and rising volumes suggest that traders are positioning for the next phase. The Bitcoin dominance chart shows declining momentum, which often leads to stronger performance for other digital assets.

Bitcoin Price Holds $100K+ But Dominance Faces Technical Headwinds

Bitcoin’s price now holds strong near $102,800, consolidating its recent break above the psychologically crucial $100,000 level. The rise in dominance this year aligned with Bitcoin’s major rally from $60,000. But this latest technical setup indicates a pause in dominance strength — even if price continues to test new highs.

Meanwhile, altcoins like Ethereum and Solana have started to gain traction. Ethereum’s recent gains brought it back above $5,000 for the first time since late March. Market watchers now anticipate a stronger push from alternative cryptocurrencies if BTC dominance pulls back further.

What’s Next? Confirming the Altcoin Market Shift

If Bitcoin dominance confirms a top, altcoins could lead the next phase of the market. Data from platforms like CoinGlass shows an uptick in altcoin futures volume and funding rates — often an early sign of a shift in market interest. At the same time, the Altcoin Season Index has also begun moving upward, reflecting increased speculation beyond Bitcoin.

The coming days will be crucial in confirming whether this technical setup marks the official start of a new altcoin-driven rally.