The cryptocurrency market is known for its cyclical rotations—capital flows shifting between Bitcoin and altcoins, creating waves of opportunity. After a prolonged period of Bitcoin dominance and price consolidation, altcoins are showing signs of readiness to take the spotlight. Investors and traders alike are keenly observing key signals that suggest altcoins could soon outperform Bitcoin. Based on recent market activity and technical indicators, here are five crucial signs indicating that altcoins may be gearing up for a strong run.
1. Declining Bitcoin Dominance on the Monthly Chart
Bitcoin dominance refers to the percentage of the total cryptocurrency market cap that Bitcoin represents. Historically, when Bitcoin dominance decreases, it implies that investors are allocating more capital into altcoins rather than exiting the crypto space entirely or sticking predominantly with Bitcoin.
Recent charts show a clear rejection in Bitcoin dominance around the 60–65% range—a historically significant zone last seen during the bullish altcoin surge from mid-2019 to early 2021. Moreover, an essential uptrending support line on the monthly Bitcoin dominance chart has recently been broken, signaling a potential shift in market structure.
The last time Bitcoin dominance dropped below current levels, altcoins subsequently soared. While no prediction is guaranteed, history suggests that a declining Bitcoin dominance trend often precedes altcoin rallies.
2. Bearish Crossover on the Bitcoin Dominance MACD
The Moving Average Convergence Divergence (MACD) is a momentum indicator popular among traders. On the monthly Bitcoin dominance chart, a bearish MACD crossover appears to be unfolding — where the MACD line crosses below the signal line.
Such crossovers are rare on monthly timeframes but tend to persist for months, indicating major market trend shifts. Historically, a bearish MACD crossover on Bitcoin dominance often signals a rotation out of Bitcoin (“Orange Coin”) and into altcoins. A confirmed monthly close below this crossover would mark the first momentum shift since early 2022, reinforcing expectations of a prolonged altcoin outperformance phase.
3. Monthly RSI Sell Signal on Bitcoin Dominance
The Relative Strength Index (RSI) is another key technical tool. On the monthly chart, Bitcoin dominance’s RSI is rolling over, heading lower — reminiscent of the bearish momentum experienced back in 2021 during the last big altcoin season.
Unlike shorter-term dips, monthly RSI movements are typically more reliable indicators of sustained trend changes. The current RSI action aligns with the MACD and dominance break, collectively signaling that Bitcoin’s grip over the market is weakening and altcoins may soon gain favor.
4. ETH/BTC Ratio Breakout
Ethereum’s performance relative to Bitcoin is a leading barometer for altcoin sentiment because ETH often spearheads altcoin rallies. The ETH/BTC pair has struggled throughout this cycle but is now breaking out of a prolonged downtrend, challenging a critical resistance zone near 0.04 BTC.
This breakout is fueled by growing institutional support for Ethereum as the foundational platform for stablecoins and real-world assets, coupled with increasing inflows into ETH treasury companies and spot ETFs.
When Ethereum strengthens against Bitcoin, it often opens the door for the entire altcoin market to rally. Thus, irrespective of whether investors hold Ethereum directly, a rising ETH/BTC ratio is a bullish omen that broader altcoins could soon follow.
5. Bullish Monthly MACD Crossover on Ethereum
Digging deeper, Ethereum’s monthly MACD indicator is signaling a bullish crossover—the first in years. The last such crossover occurred in mid-2020, sparking an exponential rally that lasted about a year.
This positive momentum shift from prolonged oversold conditions on the monthly timeframe signals a potential new uptrend for Ethereum, which historically leads extended altcoin bull markets.
The current crossover signifies more than a short-term bounce; it suggests a fundamental change in long-term momentum, reinforcing the likelihood of an ETH-led altcoin rally ahead.
Conclusion
As Bitcoin completes its recent consolidation and shows signs of waning dominance, multiple technical indicators align to suggest altcoins are primed for outperformance. The break in Bitcoin dominance’s long-term uptrend, bearish monthly MACD and RSI signals, combined with Ethereum’s breakout against Bitcoin and a bullish MACD crossover on ETH itself, collectively point toward an altcoin rotation.
While no market outcomes are ever certain, these five indicators provide compelling evidence that altcoins could soon take the lead, offering potentially substantial returns relative to Bitcoin. Investors should monitor these signals closely and consider positioning accordingly for what may be an exciting phase in the crypto market cycle.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile.
