Bitcoin Dominance Shows Bearish Divergence – Altseason Could Be Near
Bitcoin briefly reached $108,800 but failed to maintain higher prices, reinforcing resistance below its all-time high. The market is cautious, with expectations of increased volatility. Bitcoin hovers below $109,300, prompting traders to watch for a breakout or pullback. Analyst Ted Pillows noted a daily bearish divergence in Bitcoin dominance, indicating a potential shift from Bitcoin to altcoins. Historically, such divergences have led to strong altcoin rallies as capital flows from Bitcoin into higher-beta assets. Following reduced geopolitical tensions, Bitcoin surged above $105,000 but struggles to break the $109,300–$110,000 range, raising concerns about momentum. Analysts cite strong accumulation trends and improving macroeconomic conditions but warn that prolonged resistance could lead to capital rotation into altcoins. The combination of geopolitical relief and technical signals suggests a possible upcoming altseason, with traders closely monitoring Bitcoin's price and dominance levels for swift market movements.
