Altcoins Poised for Growth as Bitcoin Dominance Faces Bearish Backtest Signal

Bitcoin dominance chart reveals a bearish backtest structure, suggesting a potential market shift where altcoins could regain stronger momentum.

Many altcoins are consolidating at macro support levels, presenting solid accumulation zones that indicate undervaluation and potential upcoming capital rotation.

$TOTAL3 index forms a double bottom structure on lower timeframes, signaling the likelihood of a recovery across the broader altcoin market.

Altcoins are showing signs of renewed strength as Bitcoin dominance weakens, with analysts pointing to clear macro patterns favoring alternative cryptocurrencies.

Bitcoin Dominance Backtest Signals Potential Rotation

Market analyst @el_crypto_prof shared a chart suggesting that Bitcoin dominance has entered a bearish backtest phase. The weekly chart displays a large ascending broadening wedge, historically considered a reversal pattern.

The breakdown below the wedge’s lower trendline, followed by a retest of the former support as resistance, points to a possible shift. This behavior is often associated with declining dominance, paving the way for capital rotation into altcoins.

According to the analysis, this move fits the traditional setup before a decline in Bitcoin’s share of the market, usually preceding altcoin outperformance. Such structural developments add weight to the view that altcoins are preparing for stronger market participation.

Altcoins Positioned at Macro Support Levels

Following months of subdued activity, many altcoins are trading near long-term support zones. These levels have acted as accumulation areas, suggesting that market participants are positioning ahead of a potential breakout.

@el_crypto_prof emphasized that the current environment, though quiet and pessimistic, may be favorable for patient investors. The silence reflects a phase often observed before renewed strength across the altcoin market.

This perspective suggests that altcoins are not only stable but also undervalued on a macro scale. With Bitcoin dominance weakening, the stage could be set for renewed capital inflows into alternative assets.

TOTAL3 Chart Hints at Possible Recovery

Adding to the outlook, @CryptoPulse_CRU highlighted the performance of $TOTAL3, which tracks the market capitalization of altcoins excluding Bitcoin and Ethereum. On the weekly timeframe, the index recently faced resistance at its cup-and-handle neckline.

While the rejection appeared normal, lower timeframes show encouraging patterns. A double bottom structure is forming, suggesting a potential reversal if confirmed by a breakout. Such patterns often precede upward movements after extended consolidation phases.

If $TOTAL3 sustains this developing structure, altcoins may soon see a stronger rebound. This aligns with broader technical observations pointing toward a more favorable environment for non-Bitcoin assets.

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