Bitcoin Dominance Is Heading Toward a New Key Pivot Level, Several Analysts Expecting a Head-and-Shoulders Pattern Reversal

Bitcoin dominance is heading toward a new key pivot level, with several analysts expecting a head-and-shoulders pattern reversal that may open the door to altcoins.

Bitcoin (BTC) dominance is heading toward a new key pivot level, with several analysts expecting a head-and-shoulders pattern reversal that may open the door to a long-awaited altcoin season.

As the altcoin season index is almost as low as ever, according to Mister Crypto, this pattern usually happens when altcoins are preparing for a surge, especially before they attain the parabolic trend.

His tweet is in sync with an analysis by CryptoELiTES, who noted that BTC.d is still high, as previous tops indicate, while Fed total assets are at a local low.

“The Fed is officially cornered! It’s time for Bitcoin Dominance to drop and the Altcoin rally to finally take off! We’re expecting Q2 2025 for the next bounce.”

The visual correlation suggests that the BTC.d tops usually precede an upcoming decline, which is traditionally linked to the surge of altcoins. Currently, the total assets of the Fed appear to be rebounding from another local bottom, a pattern that typically signals a decrease in BTC dominance.

Analysts From Matrixport Warn: Macro Conditions Still Not Supportive for Sustainable Altcoin Trend

In a recent report, analysts from Matrixport highlighted that the recent rally in the altcoin market does not yet have sufficient support from policies in the macro economy and money supply. They identified four key conditions for a sustainable altcoin season: a change in regime at the Federal Reserve toward cutting interest rates, a hike in stablecoin issuance, and increased macro liquidity, along with a decrease in Bitcoin dominance.

Among these four, only stablecoin issuance seems to have made some more concrete advancement. Since August, Tether (USDT) has increased by 26%, and USD Coin (USDC) has surged from $31bn to $60bn. However, increasing expectations of the federal funds rate and unresolved trade issues are hindering optimism among investors in general.

The US Federal Reserve chair, Jerome Powell, recently affirmed that the organization has signaled it is not inclined to lower the interest rate.

Also, the Fed is keeping an eye on the impact of policy adjustments and the Trump administration’s tariff plans. Some analysts have warned that inflation risks from the tariffs may slow the trend toward easing monetary policy.

However, even Ether (ETH) has not been able to regain the market leadership among altcoins. Additionally, it has lost nearly half of its value since the approval of the US-based spot Ether ETF. Matrixport also revealed that the interest from public investors was not sustained, as it was only observed to increase in the early days of the year. Every single trend, from AI tokens to meme coins, has followed the classic pattern.

Scottie Pippen Fuels Hype With April 20 Prediction

Adding to the discussion, basketball star Scottie Pippen weighed in on the topic. According to the NBA legend, the biggest altcoin season may start as soon as April 20, 340 days after the last Bitcoin halving event.

He explained that the last halving event took place on the 20th of April 2024, which saw block rewards halved to 3.125 BTC. Pippen stated that previous alt seasons happened around one year after similar supply shocks. The accumulation of spot Bitcoin ETFs by institutions like Blackrock, which holds over 570,000 BTC, also increases the chances of a liquidity-driven altcoin cycle.