Is Altcoin Season beginning? BTC Dominance breakdown hints at…
The market appeared calm on the surface, but underlying stress was evident in dominance charts. USDT Dominance reached a critical 9% resistance level, a point that previously marked cycle turning points. The weekly chart showed a sharp rejection with an overbought RSI near 78, suggesting stretched stablecoin demand and potential capital rotation into riskier assets.
Simultaneously, BTC Dominance broke below a rising wedge pattern, closing near 58.99%. Momentum indicators like MACD and RSI softened, indicating a pause in Bitcoin's dominance. However, a quick reclaim of wedge support could weaken this bearish outlook.
Market sentiment hit extreme fear levels, historically associated with opportunity zones rather than lasting tops. For an altcoin season to materialize, USDT.D must continue declining from resistance, and BTC.D must remain weak. If both conditions hold, liquidity may rotate into altcoins, making "altseason 3.0" a plausible but not yet confirmed scenario for 2026.
ambcrypto02/23 00:02
