Bitcoin Dominance Breakdown Confirmation May Signal Altseason Is Finally Here

Crypto Bull Market: Have ETH, SOL Hit Bottom Against BTC?

The crypto bull market continues, and while altcoins have yet to enter a typical, explosive altseason, Bitcoin ($BTC) continues to perform well.

However, as BTC price stalls and fails to make new highs, and as BTC price now trades below $50,000, have Ethereum ($ETH) and Solana ($SOL) hit bottom against their $BTC pairs?

Bitcoin Dominance breakdown confirmation

Source: TradingView

The first chart to watch for the early signs of any big altcoin move is always Bitcoin Dominance (BTC.D). An ascending wedge that has been forming since June looks to finally be breaking down.

Dominance broke below the bottom of the wedge, and it looks like the break may be confirmed. If so, traders and investors can then look for a lower low to take dominance below 54.6%, with an eventual target of 48% down to 40%.

ETH at huge support against BTC

Source: TradingView

ETH is at a very critical point against its BTC pair (ETH/BTC). A long-time descending channel has brought ETH to a hugely important horizontal support level at 0.036 BTC.

If this support were to fail, and also the coincidence of the ascending bull market trendline, it would likely be game-over for ETH - at least until the start of the next bull market.

A bounce must occur from this current level, and given the strength of the support, this really should happen.

That said, the Stochastic RSI momentum indicator at the bottom of the chart has just recorded a turn down of the indicator line. This line is very likely to continue down, with a last chance to bounce at the 50.00 level.

This last chance must be taken.

SOL ready for massive bounce against BTC

Source: TradingView

Compared to ETH/BTC, the SOL/BTC chart is incredibly bullish. What initially looked like a bull pennant, broke down in early December after being rejected from its upper trendline.

The price carried on down and came to rest on top of the massively important horizontal support level of 0.00186 BTC.

It now appears that this could also be the bottom of a bull flag, and if this is the case, a breakdown wouldn’t have occurred. The concurrence of the bull flag trendline and the horizontal price level are acting as massive support.

It would be expected that SOL continues to bounce from here, with a climb back to the top of the bull flag and a potential breakout from there back to all-time highs.

A further factor in favour of SOL is the Stochastic RSI at the bottom of the chart. The indicator lines have hit the bottom and are just starting to turn upward. The momentum for SOL over BTC is likely to rise steeply. Watch this pair closely.