As Bitcoin Dominance (BTC.D) surges past 60%, crypto analysts closely watch its movement to determine if an altcoin season is imminent. Historical data suggests a striking similarity between Bitcoin’s dominance in 2021 and 2025, raising questions about whether altcoins will soon rally or face further downside.
Historical Bitcoin Dominance Patterns Suggest Altcoin Rally
Crypto analyst Luca took to X (formerly Twitter) to compare BTC.D market capitalization in both cycles. In 2021, many traders anticipated an altcoin rally when BTC.D hit a high-timeframe resistance, only to see Bitcoin’s dominance break above resistance, causing a mass sell-off in altcoins.
Fast forward to 2025, and a similar trend appears to be unfolding. BTC.D initially dropped below the 61% resistance zone, giving traders hope for an altcoin breakout. However, Bitcoin’s dominance rebounded sharply, triggering a wave of altcoin liquidations—mirroring the 2021 cycle.
Luca’s BTC.D chart highlights a critical support zone of around 54.56%. If BTC dominance retraces to this level, historical trends suggest an altcoin rally could begin, similar to what happened in 2021.
Why Some Analysts Believe an Altcoin Season Won’t Happen
Despite the historical similarities, crypto analyst Brucer warns that 2025 may not see an altcoin season. He presents three key reasons:
- Past market cycles were fueled by major catalysts like the 2017 ICO boom and DeFi explosion in 2020-2021, which are absent in this cycle.
- Altcoins are struggling to reclaim past highs, while Bitcoin dominance keeps climbing.
- Macroeconomic conditions remain uncertain, and without a major shift, altcoins may fail to outperform Bitcoin.
Will History Repeat Itself?
With Bitcoin’s dominance at 60%, all eyes are on whether BTC.D will drop toward 54.56%, historically a key altcoin season trigger zone. If it does, altcoins may experience a new bull run. However, without major catalysts, some analysts argue that 2025 could be an exception to past cycles.
The next few weeks will be crucial in determining if history repeats or if this bull market follows a different path.