The cryptocurrency landscape is witnessing a notable shift as the Bitcoin Dominance Rate (BTCD) has experienced a significant decline since June 2025. This downturn, marking a departure from a previously robust stretch of Bitcoin performance, signals a potential surge in altcoins, particularly among small-cap options, which are poised for a breakout that could reshape market dynamics.
Notably, between July 2022 and June 2025, the BTCD demonstrated an impressive rally, peaking at 66.03%. However, this trend sharply reversed, plummeting to 57.69%, signifying an encouraging sign for altcoin enthusiasts. While this altcoin season appears less pronounced compared to 2021, the current drop in BTCD suggests a burgeoning opportunity for altcoins, which are on the brink of achieving new all-time highs.
Despite the drop, there’s yet to be a test of the 0.382 Fibonacci retracement level at 55.65%, a critical support point that could indicate a potential reversal. Current indicators reflect a bearish trend, with the Relative Strength Index (RSI) remaining well below 50 and the Moving Average Convergence/Divergence (MACD) indicating negative momentum. Analysts suggest that the BTCD corrective wave may be in its final stages, specifically pointing to a local bottom that could occur at 57%.
In parallel, the Altcoin Market Cap, excluding Ethereum, has shown bullish prospects, with analysts forecasting new peaks in 2025. Current movements indicate that altcoins may be in the fifth wave of their upward trajectory, potentially culminating in an all-time high between $1.29 trillion and $1.32 trillion. Recent attempts to break through the $1.10 trillion resistance zone could mark the beginning of intensified upward movement for altcoins, setting the stage for the culmination of the current altcoin season.
Moreover, small-cap altcoins are demonstrating signs of resilience, particularly after rebounding from their lows in June. They have successfully reclaimed the vital 8% horizontal resistance level, which bodes well for their upcoming performance. With momentum indicators showing positive signs, including rising RSI and MACD values, small-cap altcoins may be on the verge of a significant breakout. Their performance could ignite one of the most substantial increases of this cycle if they can surpass existing diagonal resistance trends.
As the cryptocurrency market continues to evolve, the breaking down of Bitcoin dominance could usher in a vibrant altcoin season. Current market structures and momentum indicators suggest that both large and small-cap altcoins still have ample room to rise before a potential peak manifests. Should this scenario unfold as anticipated, the coming weeks could be critical, heralding one of the strongest breakout periods for altcoins in 2025.
