Bitcoin Dominance 2021 Vs. 2025: Why Striking Similarities May Show If An Altcoin Season Is Possible
08 February 2025 - 1:00PM
NEWSBTC
As expectations of an altcoin season mount, a new technical
analysis of the Bitcoin Dominance (BTC.D) draws striking parallels
between the 2021 and 2025 market cycles, aiming to determine
whether altcoins are on the brink of another bull run.
Historically, Bitcoin Dominance has been a key indicator in
predicting the likelihood of an altcoin, as a decline in BTC.D
often signals a shift in investors’ focus on alternative
cryptocurrencies. Historical Bitcoin Dominance Signal
Possible Altcoin Season Crypto analyst Luca on X (formerly Twitter)
is questioning whether history is repeating itself as similar past
market trends emerge in this current cycle. The analyst shared two
parallel charts, tracking the Bitcoin Dominance market
capitalization and the start of the altcoin season. Related
Reading: Bitcoin Price Dominance And Altcoin Season: What The
Sudden Volatility Means For The Market The chart compared the BTC.D
market cap in the 2021 and 2025 cycles, revealing an eerily similar
pattern that unfolded during the bull market in 2021. Back then,
many investors had anticipated the start of the altcoin season
immediately after BTC.D hit a high-timeframe resistance. However,
to the surprise of the broader market, Bitcoin’s dominance deviated
above the resistance, leading to a mass sell-off in altcoins.
Fast-forward to 2025, Luca believes this narrative is playing out
again. As BTC.D dropped below the 61% resistance zone, the market
hoped for a rotation into altcoins. Instead, BTC.D surged even
higher, deviating again and triggering a mass capitulation of
altcoins. Luca’s Bitcoin Dominance chart shows the resistance
zone where BTC.D struggled to break through in 2021 and 2025. In
both cycles, BTC.D deviated from this resistance level. However,
after the shift in 2021, Bitcoin dominance fell sharply to the
green zone between 58% and 60%. This zone corresponded with a major
rally that sparked the start of the altcoin season. In the
2025 BTC.D chart, Luca highlighted the next green zone as around
54.56%. If historical trends repeat, BTC.D may drop to this low
level and potentially trigger a similar rally to kickstart this
cycle’s anticipated altcoin season. At the moment, all eyes
are on BTC.D as the market awaits its next move, which could define
the fate of altcoins in this bull market. The analyst notes that
the key question remains: will history repeat itself, or will the
2025 cycle run a new course? Analyst Says 2025 Altcoin Season
Is Out Of Reach In another X post, a crypto analyst, Brucer, argues
that the altcoin season may not occur during this cycle. He
outlines three primary reasons for his foreboding analysis,
underscoring that during past cycles, the altcoin season was driven
by major events like the 2017 ICO boom. However, each cycle varies
in intensity and may not repeat the same conditions that led to
past altcoin seasons. Related Reading: Is Altcoin Season Here
Already? VanEck Answers As Bitcoin Price Struggles Below $100,000
Secondly, Brucer noted that altcoins are currently struggling to
regain previous highs while Bitcoin’s dominance continues to rise,
now sitting above a 60% market cap. Lastly, the analyst suggested
that an altcoin season 2025 is unlikely unless significant
macroeconomic changes occur. Featured image from Unsplash, chart
from Tradingview.com
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