Analyst: Bitcoin Dominance Chart Signals Early Altcoin Season
Crypto analyst Matthew Hyland believes that Bitcoin’s dominance chart is flashing bearish signals, hinting at the arrival of an altcoin season sooner than most traders expect.
Bearish Structure on the Dominance Chart
According to Hyland, the weekly Bitcoin dominance chart has shown a steady downtrend for several weeks, forming a pattern that typically precedes a shift toward altcoin strength. “The reason you should be confident about the move in altcoins is that BTC dominance looks bearish — it’s been this way for weeks,” he wrote on X.
Hyland described the current bounce in dominance as nothing more than a “dead cat bounce” within a broader downtrend. This implies that capital rotation into alternative cryptocurrencies could intensify once Bitcoin loses key dominance levels, historically marking the start of a classic “altseason.”
Institutional Influence and Market Manipulation
The analyst also linked the recent volatility in Bitcoin’s price to potential institutional positioning. On November 7, Hyland suggested that large players from traditional finance may have orchestrated recent swings to secure favorable entries into the crypto market. “For the last month, I’ve believed that much of this was manipulation — essentially Wall Street setting up their positions,” he said.
This interpretation aligns with broader market observations: as institutional funds rebalance and reduce exposure to Bitcoin ETFs, liquidity often migrates toward higher-risk, higher-beta assets like Solana, Avalanche, and mid-cap DeFi tokens.
Historical Parallels and Outlook
Historically, Bitcoin dominance tends to fall sharply after major market consolidations, paving the way for explosive rallies in alternative cryptocurrencies. Analysts note that previous dominance reversals in 2017, 2021, and early 2024 all preceded 200–500% gains in leading altcoins.
If the current pattern plays out again, November could mark the early stages of a similar rotation — one fueled by trader psychology, liquidity flow, and institutional reallocation rather than retail speculation alone.
Hyland remains cautiously optimistic: “The trend looks clear. Altcoins will move first — and they’ll move faster than people expect.”
Editorial Team — CoinBotLab