Bitcoin dominance starts to decline as altcoins edge closer to the $100,000 psychological mark

A major shift is unfolding in the cryptocurrency market as Bitcoin edges closer to the $100,00 psychological mark, prompting renewed attention towards altcoins.

A major shift is unfolding in the cryptocurrency market as Bitcoin edges closer to the $100,000 psychological mark, prompting renewed attention towards altcoins.

With Bitcoin dominance starting to decline and major altcoins showing bullish technical setups, analysts believe that the early stages of an extended altcoin breakout cycle could be emerging.

This shift comes after months of sideways movement in both Bitcoin and alternative digital assets, which traders are interpreting as a period of consolidation and accumulation.

As Bitcoin continues its ascent and major altcoins like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) form bullish chart patterns on higher timeframes, the setup for a widespread breakout appears to be strengthening.

Bitcoin rally triggers altcoin interest

Bitcoin’s steady climb has captured global headlines, but under the surface, a quieter transition is taking place.

Market watchers are noting a drop in Bitcoin dominance—the measure of Bitcoin’s share in the total crypto market capitalisation—suggesting that capital is rotating into the altcoin sector.

This aligns with patterns seen in previous cycles, where Bitcoin rallies first and is followed by outsized gains in smaller-cap cryptocurrencies.

Several major tokens are now attempting to break above long-term resistance levels that have been intact since the last bull run.

ETH, SOL, DOGE show price strength

Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, has broken above key trendlines and is now targeting the $3,200 zone.

The move is supported by technical indicators, such as the MACD and RSI, showing increasing momentum and volume accumulation.

Solana (SOL), which has recovered strongly since the end of 2023, is now aiming for the $220–$230 range.

After bouncing from major support zones around $150 and $130, Solana has formed an inverse head and shoulders pattern on the daily chart, which suggests a sustained upward push.

Meanwhile, Dogecoin (DOGE), one of the most-watched memecoins, has climbed above $0.18, a key resistance level from its early 2024 highs.

DOGE’s rise is backed by increasing social media interest and retail trading volume, both considered good indicators of speculative momentum, especially in memecoins.

NEAR, KAS, ADA in breakout zones

Sticking with the altcoin theme, both NEAR Protocol (NEAR) and Kaspa (KAS) are flashing bullish setups.

NEAR has broken out of a months-long consolidation phase and is showing signs of institutional interest with Block in particular.

Technical analysis reveals a breakout from a symmetrical triangle, which is known to often precede a strong continuation move for the underlying asset.

Kaspa (KAS), known for its innovative blockDAG technology and high transaction throughput, is forming a classic bull flag pattern.

If confirmed, the pattern could point to a rapid price acceleration from current levels as traders anticipate a strong move.

Cardano (ADA) and Sonic (S) are also exhibiting interesting accumulation patterns.

ADA is currently testing upper trendlines of a multi-year triangle and aiming for a breakout, while Sonic recently completed a successful retest and breakout from a major Fib level.

These moves suggest that altcoins are attempting to recover a significant portion of their bear market losses, with analysts pointing to the potential for 100–250% rallies.

However, this will depend on sentiment holding and Bitcoin remaining above critical support.

Technicals support a bullish cycle

The latest altcoin rally is not merely speculative. It is backed by technical confirmation on higher timeframes, including weekly charts.

Patterns such as the cup and handle and inverse head and shoulders have formed across several major tokens, a common feature during the early stages of bullish cycles.

The broader implication is that altcoins could retrace around 60% of their previous losses if market momentum continues to improve.

With Bitcoin approaching the $100K mark, this shift in liquidity towards altcoins could mark the beginning of a fresh wave of capital inflows into the broader crypto market.