Capital Rotates Out of Bitcoin as Altcoins Gain Momentum—Is Altseason Near?

The crypto market

Currently hovering around 59%, Bitcoin dominance sits above key downside liquidity zones between 58% and 56%. A sustained move lower would historically favor altcoin outperformance, while a bounce from this region would signal a Bitcoin to regain control.

What Both Charts Are Really Saying

Taken together, the message is clear: Volume rotation is already happening, while Dominance structure is beginning to confirm it. This combination often supports continued strength in altcoins. However, history shows that this process happens in stages. Ethereum usually leads first. Large-cap tokens like Solana, BNB, and XRP tend to follow. Smaller altcoins typically move later.

This is not yet a “buy everything” environment. It is a rotation phase, not a speculative frenzy. There are also clear invalidation risks. A sharp breakdown in Bitcoin price below $89,000, or a rebound in BTC dominance above ~62%, would weaken the current altcoin thesis quickly.

What Comes Next—Could This Lead to Altseason in 2026?

If Bitcoin continues to trade sideways and dominance keeps falling, altcoins could extend their gains. Ethereum holding above $3,000 remains a key signal to watch.

A true altseason will need:

A steady drop in Bitcoin dominance
More altcoins are joining the move
Strong spot buying, not just leverage

For now, the market appears to be building a base rather than entering a full rally. If current trends continue, 2026 could still shape up as an important year for altcoins.

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