Altcoins Are Witnessing Large-Scale Withdrawals From Binance

Altcoins are witnessing large-scale withdrawals from Binance, raising questions about what investors are preparing for.

Large-scale altcoin withdrawals from Binance have sparked questions about what investors are preparing for.

If Bitcoin [BTC] dominance fails to break its current highs and altcoins maintain momentum, a broader rotation could unfold rapidly.

Bitcoin’s dominance recently dropped from 65.81% and found support near 63.44%, remaining within its broader ascending channel. However, this sharp rejection at the top of the range has sparked speculation that the market could be preparing for a rotation.

Image: TradingView

Can the altcoin season index confirm the shift?

The current Altcoin Season Index remained low at 22, clearly indicating a Bitcoin season. However, the index has started to rise from previous lows, hinting at building altcoin momentum.

While not yet within the altseason zone, repeated altcoin accumulation and recent performance gains point toward early-stage sentiment changes.

Historically, the index lags behind wallet flows and price performance. This early movement suggests the market is transitioning and could soon break out of Bitcoin dominance.

Image: CoinMarketCap

The takeaway: Flows, dominance, and performance divergence

The market presented an unusual divergence. Binance outflows indicated that large holders were accumulating altcoins.

At the same time, BTC dominance held firm within an uptrend, while altcoin returns surged. These mixed signals suggested that the market was in a transitional phase.

Therefore, traders should not rely solely on dominance metrics but also watch accumulation trends and price performance.

This divergence may soon resolve in favor of altcoins, especially if Bitcoin dominance drops below support.

Ultimately, the accumulation trends, price outperformance, and early movement in the altcoin season index all point toward an upcoming shift.