- Bitcoin Dominance has consistently faced resistance at 71%, sparking major altcoin rallies
- Altcoin markets are heating up as Bitcoin dominance approaches a key resistance level
Bitcoin [BTC] Dominance (BTC.D) has long been a critical metric for forecasting altcoin performance.
Each time BTC.D nears the 71% level, it is historically followed by a rejection, signaling the start of a strong altcoin season.
With BTC.D approaching this key threshold again, the market may be on the verge of a shift, offering altcoins the opportunity to rally and capture investor attention.
BTC.D and its role in the market
Bitcoin Dominance measures Bitcoin’s share of the total crypto market cap and is a vital indicator of market trends. Historically, a rise in BTC.D suggests that investors are consolidating around Bitcoin, often at the expense of altcoins.
However, when BTC.D approaches resistance levels like the critical 71% threshold, it often signals a shift in sentiment.
Past patterns reveal that a rejection at this level has sparked significant altcoin rallies, commonly referred to as “altcoin seasons.”
As Bitcoin dominance edges closer to this pivotal level, market participants are watching closely for signs of a potential breakout or a shift toward altcoin gains.
Historical trends: Bitcoin dominance at 71%
BTC.D has historically faced strong resistance at the 71% level, triggering notable altcoin seasons.
In 2017, BTC.D touched this threshold before a sharp rejection, coinciding with explosive altcoin rallies.
Similarly, in late 2020, dominance approached 71% before pulling back, marking the onset of a record-breaking altcoin bull run in 2021.
Source: X
The data highlights this cyclical pattern, with each rejection creating opportunities for altcoins to capture significant market share.
Current conditions echo these historical setups as BTC.D trends upward, approaching the same resistance zone. The market is now watching closely, with analysts suggesting a potential capital influx into altcoins if dominance is rejected again.
Factors like rising altcoin trading volume and investor sentiment further strengthen the likelihood of history repeating itself, positioning the market for another altcoin surge.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
The road ahead: Will 2025 spark the next altcoin season?
An “altseason” occurs when altcoins outperform Bitcoin, with smaller-cap coins often experiencing exponential price growth.
Historically, these periods have followed rejections in BTC.D, as seen in 2017 and 2021. During those times, altcoins capitalized on shifting investor sentiment and BTC.D pullbacks.
Current market sentiment hints at a brewing altcoin rally. Recent developments in 2025 have significantly bolstered the altcoin ecosystem, particularly in sectors like DeFi, NFTs, and layer 2 solutions.
For instance, Coinbase’s Layer 2 network, Base, aims to reduce Ethereum’s gas fees by up to 95%, enhancing affordability for DeFi and NFT activities.
Additionally, asset managers have filed applications with the U.S. Securities and Exchange Commission to create ETFs for altcoins like Solana, XRP, and Dogecoin, hinting at growing institutional interest.
If Bitcoin’s dominance continues to decline, the market could witness another surge in altcoin performance.