ETH and Alts Surge as Bitcoin Dominance Plunges Below Key Level

BTC dominance falls below 13–500 EMAs, with 200 EMA now acting as resistance at 61%, hinting at prolonged altcoin favor.

RSI on BTC dominance dips to 20–22, indicating oversold conditions that may lead to a temporary relief bounce.

ASI climbs from 15 to 49 in one month, suggesting a shift in capital toward altcoins amid rising total altcoin market cap.

Bitcoin dominance continues its steep retreat, falling from a June peak of 66% to 60.57% on the daily chart. This decline is a notable change in market moves, especially as altcoins like Ethereum gain strength

The idea that Bitcoin needed to drop for dominance to fall has been disproven, as both Ethereum and the total altcoin market cap rise alongside Bitcoin. The statement came from a post on X, challenging the belief that BTC’s dominance only drops during Bitcoin price corrections.

Bitcoin Dominance Breaks Key Support

BTC dominance has dropped below several key moving averages, including the 13, 21, and 34 EMAs, indicating sustained downside pressure. The daily candle is beneath the thick EMA cloud that includes the 50, 100, 200, and 500 EMAs, with the 200 EMA approximately at 61% now acting as a resistance level

This breakdown has pushed the RSI to oversold levels, between 20 and 22, indicating substantial downward pressure. This technical setup has historically led to temporary reversals or relief bounces

Market Cap BTC Dominance 1-day price chart, Source: Anonymous on X

However, the continued weakness below the EMA cloud suggests a more extended period of reduced dominance. If BTC dominance attempts a rebound, reclaiming the 61% mark could lead to a short term stall in altcoin momentum.

Altcoin Season Index Shows Mixed Signals

While BTC dominance falls, CoinMarketCap Altcoin Season Index (ASI) shows a volatile but upward trend. The current ASI is at 49, right at the level between Bitcoin and Altcoin seasons

Altcoin Season Index Chart, Source: CoinMarketCap

Just yesterday, ASI read 55, suggesting recent altcoin strength. One month ago, the index was at 15, indicating a heavy Bitcoin change. The fast increase suggests a change in investor focus toward altcoins

This has been the case since the altcoin market cap has climbed from $1.1 trillion in June to over $1.75 trillion. This surge in altcoin valuation aligns with the drop in BTC dominance

The market had a stagnant phase from May through mid June, followed by a sharp acceleration in altcoin inflows starting in late June. Key narratives like AI, Layer 2s, and DeFi may have contributed to this renewed interest.

Market Holds Steady as Altcoin Rally Faces Key Support Levels

The recent activity points to a delicate transition zone. If BTC dominance drops below 60%, the next likely target is near 58%. On the other hand, failure to hold current altcoin market cap levels above $1.6 trillion may lead to a temporary pullback

ASI dipped slightly from 55 to 49 today, showing that altcoin dominance is not yet fully secure. Despite oversold conditions on the dominance chart, altcoins remain in focus

Capital continues flowing into the sector, and key technical levels are being tested. The interplay between dominance levels, RSI conditions, and market cap levels will guide the next directional move.

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