- Bitcoin dominance hit 64%, triggering speculation of another 2021-style altcoin season.
- Solana and altcoins saw strong inflows, hinting at a potential market rotation.
- RSI signals suggest Bitcoin’s momentum may be weakening, setting the stage for altcoins.
Bitcoin Dominance has reached 64%, which hasn’t happened in over four years. Feels like a big deal, right? And while Bitcoin looks strong on the surface, the charts are telling a different story. Some early signs point to the kind of shift we saw back in 2021. Altcoins might be gearing up for their turn in the spotlight.
Bitcoin Looks Strong, But Is the Momentum Slipping?
On April 7, Bitcoin dominance closed at 64%. That’s a major resistance level from years ago. Traders had been eyeing that line for a while, and now it’s finally been breached. But here’s the catch—the Relative Strength Index shot above 80. That usually screams “overbought,” which could mean the run is losing steam. The very next day, the price of Bitcoin dropped over 3.5%.
That quick pullback seemed to confirm the warning signs. Meanwhile, capital started flowing into altcoins. The total market cap—excluding Bitcoin—jumped by $42 billion in one week. Solana led the charge with an impressive 11% weekly gain. Something similar played out in 2021. Back then, Bitcoin dominance topped out while the Altcoin Market Index hit rock bottom. What followed? A massive altcoin rally.
By early 2022, that same index had surged past 75, kicking off a full-blown altcoin season. Fast forward to now—the Altcoin Market Index bounced from 13 to 20 in just days. That move looks a lot like the 2024 Q3 pattern, where the index bottomed before shooting up to 87 by December. History doesn’t always repeat, but this setup feels way too familiar to ignore.
Still Waiting for the Flip
Now, here’s where things get tricky. Even after the RSI flashed red and Bitcoin pulled back, dominance didn’t fade for long. Over the next week, the number crept back above 64%, showing that Bitcoin still holds the spotlight—for now. Many investors noticed the setup but didn’t make a move. That hesitation might say something deeper. Maybe high dominance doesn’t always lead to a flip.
On the other hand, the market might just be waiting for the perfect moment. Still, there’s no denying the signs. Solana surged. Altcoins pulled in serious cash. The technical signals are stacking up like dominoes. This could be the early rumble before another shift. For now, traders don’t know exactly when the flip will happen. But if past cycles offer any clues, altcoins may be getting ready to run.
