Bitcoin (BTC) dominance is rolling over near the 60% zone, with momentum signals pointing to a possible capital rotation that could echo the altcoin runs of 2017 and 2021.
Bitcoin Dominance Loses Steam Near 60%
The BTC.D metric has begun fading after testing the 60% area during the recent market expansion, according to a CryptoQuant Quicktake note.
That slowdown hints capital concentration around Bitcoin may be loosening.
Both the RSI and MACD on the dominance chart are flashing bearish, with a fresh crossover printed this week.
Coverage on Bloomingbit noted the move could mark a structural shift rather than a routine pullback.
CryptoQuant analyst CryptoOnchain said the firm's "Altcoin Volume Increasing Trend" indicator has activated, a signal that fires when 30-day altcoin volume on centralized exchanges crosses above the 365-day average.
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Altseason Signals Clash With BTC Control
Past cycles show why the readings matter. During 2017, BTC.D collapsed from nearly 95% toward 35% as Ether (ETH) and smaller-cap tokens absorbed liquidity, fueling one of crypto's strongest altcoin rallies.
A similar setup reappeared in 2021, when dominance touched 70% before sliding below 40% as Bitcoin pushed toward $60,000.
Selective rotation already shows up in pockets.
Solana (SOL) and SUI (SUI) have posted recent double-digit gains, and stablecoin supply tracked by DefiLlama sits above $320 billion, signaling deep sidelined liquidity.
Yet most activity still leans on leveraged trading rather than sustained spot accumulation. The Altcoin Season Index sits near 35, well below the 75 threshold that typically confirms a full rotation.
Why The Pattern Could Still Fail
Bitcoin's share of total crypto market cap closed at 60.88%, breaking out of an eight-month accumulation range that held BTC.D between 58% and 60% from August 2025 through April 2026.
The next resistance area sits near 66.06%, the prior cycle high.
History also cuts both ways for traders chasing a repeat.
After dominance climbed near 70% in early 2021, capital briefly retreated to Bitcoin and stablecoins each time liquidity tightened, and the 2022 reversal saw the altcoin volume ratio collapse below 0.20 inside months. For altcoins to truly take the wheel, the index needs to push above 50 while BTC.D loses the 59.63% support zone identified by analysts.
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