From BTC to Altcoins: Market Signals Point to Massive Rotation and Growth

Bitcoin dominance falls below support, pointing to capital flow toward Ethereum and altcoins.

Historic altcoin cycles show double bottoms and re-accumulation phases before major rallies.

Fed’s September 17 meeting, with an 89% chance of a rate cut, could unlock new liquidity for crypto.

The altcoin market is flashing signals of a powerful breakout cycle as Bitcoin dominance weakens. Historic accumulation trends and coming macro shifts suggest a strong rally may be building ahead.

Altcoin Market Readies for Expansion

Stockmoney Lizards highlighted on the OTHERS/BTC chart that altcoins remain historically undervalued compared to Bitcoin. The chart highlights repeated phases of accumulation and expansion since 2015, marked by double bottoms and rising lows. Each of these phases has sparked a strong cycle, including the parabolic altcoin surge in 2017 and the powerful bull run in 2021.

During 2022 and 2023, the market carved another double bottom while maintaining higher lows. By 2024, a fresh re-accumulation phase appeared, resembling past setups that preceded sharp rallies. This structure points to mid- and small-cap coins preparing for a crucial growth stage, backed by bullish momentum divergences and steady capital rotation.

Bitcoin Dominance Points to Shift

Bitcoin dominance, which measures BTC’s share of the total crypto market, has now broken below both its rising trendline and a vital support band around 59.5–60%. This breakdown reflects a structural change. Each decline in dominance in the past has coincided with Ethereum and other altcoins taking the lead.

Ethereum’s ETH/BTC chart confirms this trend. For nearly two years, ETH has remained capped under a long-term descending trendline. Over recent weeks, ETH rallied strongly and retested that resistance. A breakout here would signal ETH’s growing strength against BTC and potentially fast-track the next altcoin rally.

Macro Environment Adds Tailwind

Global conditions are reinforcing these technical signals. CME FedWatch Tool data shows an 89% chance of a 25 basis point rate cut at the September 17 FOMC meeting, and an 11% chance of a deeper 50 bps cut. Any easing of monetary policy would inject liquidity into risk assets, giving cryptocurrencies an added boost.

With Bitcoin dominance losing ground and Ethereum testing breakout levels, historic cycles signal the next big altcoin rally. Backed by liquidity shifts and repeated re-accumulation setups, the stage is set for a potentially explosive phase in the months ahead.

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