Capital Rotation Signals Possible Altseason as BTC, ETH, and Stablecoin Dominance Weakens

Capital rotation shows BTC, ETH, and stablecoin dominance rallying, breaking trendline, bouncing from 74%, and retesting—a sequence resembling past altseason setups.

In 2021, the same dominance breakdown pattern preceded one of the largest altcoin rallies, creating a framework now observed by market participants.

Analysts monitor the chart as lower dominance often signals capital leaving safer assets, rotating into high-risk altcoins, fueling strong market-wide rallies.

Capital rotation (1W) is once again drawing attention as dominance between BTC, ETH, and stablecoins shows a repeating cycle from earlier market phases.

BTC, ETH, and Stablecoin Dominance Trend

According to CrypFlow, the dominance of BTC, ETH, and stablecoins often reflects where safer money positions itself. High dominance indicates capital parked in these assets, while lower dominance suggests risk appetite shifting into altcoins.

Historically, the pattern follows an uptrend where dominance climbs, a breakdown of trendline support, a temporary rebound near 74%, and a retest of the broken line. This behavior signals a rotation that preceded past altcoin surges, particularly during the 2021 cycle.

Currently, the same sequence appears to be unfolding. Dominance rallied, broke the trendline, tested support around 74%, and then retested the former line, raising anticipation of another potential shift.

Retest and Breakdown Confirm Market Rhythm

CrypFlow noted that after the breakdown, dominance bounced from the 74% level before retesting the prior trendline. This step was crucial in earlier market cycles where a similar structure preceded wider altcoin rallies.

The sequence appears consistent: trendline growth, breakdown, temporary stabilization, retest, and eventually a more sustained decline. Each stage represents investor positioning that transitions from safety into higher-risk assets.

Market observers emphasize the historical context, pointing to 2021 when this rhythm aligned with one of the strongest altcoin runs in recent history. The current setup has sparked discussion on whether another rotation is approaching.

Altseason Expectations Based on Past Cycles

If the pattern holds, the next stage would be a full breakdown of dominance, creating conditions for altseason momentum. Lower dominance reflects reduced concentration in BTC, ETH, and stablecoins, signaling movement toward broader altcoin markets.

The repeating sequence gives traders a framework to evaluate potential opportunities. CrypFlow’s observation that history may rhyme has encouraged close monitoring of the dominance chart.

While the timeline remains uncertain, the setup indicates a market structure where altcoins could gain as capital rotates away from safer zones.

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