Bitcoin Dominance Peaks: Altcoin Season Ahead?

Renowned crypto analyst Michaël van de Poppe has identified a strong bearish divergence on the weekly timeframe for Bitcoin dominance — a signal that may mark the end of the bear market.

Renowned crypto analyst Michaël van de Poppe has spotted a key technical signal that could be setting the stage for a shift in market dynamics — potentially spelling good news for altcoins.

In a recent X post, the analyst highlighted a strong bearish divergence on the weekly timeframe for Bitcoin dominance. This divergence, which occurs when an asset’s price trends in the opposite direction to a technical indicator, is a bearish signal that may be indicating the end of the bear market for altcoins.

“Bitcoin dominance setting a clear peak and Relative Strength Index setting lower highs. This is a bearish divergence, which is usually indicating the end of the bear market and a reversal in favor of altcoins.”

Chart: Michaël van de Poppe

To understand why this is significant, it's essential to consider the implications of BTC dominance peaks. As the apex of Bitcoin's share of the total crypto market cap, it typically signals an impending capital rotation from Bitcoin into other crypto assets.

This rotation is a common occurrence during periods of consolidation or slowing momentum in Bitcoin, as investors tend to seek out new opportunities for gains, especially in the realm of mid- and small-cap crypto assets, commonly known as altcoins.

The chart shared by van de Poppe clearly marks the current zone as the “end of bear market” region — where Bitcoin’s dominance previously topped out in past cycles, such as 2021 and 2017.

With this signal flashing, many traders and investors are now closely watching for renewed strength across altcoins, which could signal the start of a multi-week altcoin season.

This analysis aligns with a broader theme of market exhaustion and potential reversals, as several major assets and markets have reached key resistance levels and begun to show signs of slowing momentum.

As the crypto market continues to evolve, staying informed about technical indicators and market trends will be crucial for navigating the ever-changing landscape of digital assets.

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