BTC Dominance: The Calm Before the Storm

Every altseason follows the same script.

And right now? We’re in the setup phase.

📈 Bitcoin Dominance (BTC.D) is climbing, and people are confused.

• Alts are sluggish.

• BTC is hogging all the liquidity.

• The market feels uneven.

But if you zoom out and study past cycles, you’ll notice one thing:

🔄 Before every major collapse in BTC dominance, a bearish divergence forms.

This is the precursor to altseason.

Let’s break it down.

Step 1: BTC Dominance Rises (Where We Are Now)

Bitcoin dominance is at elevated levels. It’s outperforming everything.

🔹 Investors are skeptical: “Why are alts getting wrecked?”
🔹 Everyone’s focused on BTC: “Maybe this cycle is different?”
🔹 But history repeats—just before a drop in BTC dominance, we always see this run-up.

A similar pattern played out in 2017 and 2021 before altseasons exploded.

So what’s likely next?

Step 2: The Bearish Divergence Forms

On the weekly chart, BTC dominance has pushed higher.

🚨 But look deeper—momentum indicators are showing early signs of exhaustion.

📊 Stochastic RSI on the monthly? Creating a bearish divergence.

Translation?

➡️ BTC dominance may still have a final push…
➡️ But it’s setting up for a breakdown.

Step 3: The Rejection Zone (The Trigger for Altseason)

The $72K BTC level is crucial.

💡 Why?

• It’s the major retest zone from last year.

• If BTC wicks down from there, it creates a liquidity event.

• That’s often when BTC dominance tops and money rotates into alts.

We’ve seen this exact play before:
✅ 2017: BTC.D peaked before breaking down → Altseason followed.
✅ 2021: BTC.D peaked before breaking down → Altseason followed.
✅ 2024: BTC.D is peaking… what comes next?

If BTC.D forms and confirms a bearish divergence—the real alt run begins.

Final Thoughts: What to Watch For

1️⃣ Bitcoin Dominance Weekly Chart – Watch for divergence signals.
2️⃣ BTC at $72K Zone – Key rejection area to trigger dominance drop.
3️⃣ Monthly Stochastic RSI – Aligning for long-term downside.

📌 If you’re holding alts, this is the moment to prepare.

Altseason isn’t here yet. But it’s loading.

And if you position yourself now… you won’t be chasing green candles later.

Start positioning yourself with a plan in 9-5 Traders

Stay sharp.