- Bitcoin dominance reversal has triggered the same repeating cycle since 2017, marking the start of liquidity rotation into alternative digital assets.
- Analysts confirm altseason signals as Bitcoin consolidates and capital flows shift, with the Altseason Index surpassing the critical 80 resistance level.
- Historical precedent shows altcoins surged whenever dominance dropped into low 40% ranges, aligning with current market signals of another cycle repeating.
Altcoins appear ready for a powerful rally as analysts point to a repeating cycle that has unfolded since 2017. With Bitcoin dominance showing early signs of reversal, traders suggest that liquidity is now rotating into alternative assets.
Final Shakeout Creates Entry Point
Merlijn The Trader explained on X that Bitcoin dominance has historically followed a clear structure. Each cycle begins with a final shakeout, where altcoin holders sell into volatility. This stage often signals that institutional players are accumulating at lower levels.
He emphasized that this has been the recurring entry point for altcoins across previous market cycles. From 2017 through 2022, every peak in Bitcoin dominance coincided with weakness in the broader altcoin market. This move consistently created conditions for the next stage of rotation.
The shakeout phase has become a defining marker in the cycle. Traders watching dominance charts see it as the first sign that altcoins could soon benefit from new liquidity flows. This step is now being observed once again.
Bitcoin Cools and Liquidity Rotates
After the shakeout, Bitcoin typically enters a cooling phase. During this period, dominance begins to roll over, and capital searches for higher returns. Merlijn stated that this has always been the moment when liquidity rotates toward altcoins.
His commentary noted that Bitcoin consolidation provides the opportunity for altcoins to capture market attention. Investors who shift at this stage often look for outsized performance in assets beyond Bitcoin. This transition has been at the center of every altcoin season since 2017.
Leshka.eth also pointed to the Altseason Index, which has recently broken through the 80 level. This move has been read as confirmation that altcoins are beginning to outperform. Such developments support the view that rotation is actively occurring.
Altcoins Positioned for Strong Performance
The final stage of the cycle has historically produced large moves in alternative assets. As dominance drops sharply, altcoins have advanced in what traders often describe as rapid and broad rallies. In past cycles, dominance reached the low 40% range before stabilizing.
Merlijn explained that each of these phases—2018, 2021, and 2022—delivered similar results. Once dominance rolled over, altcoins experienced accelerated inflows and strong upward moves. He described the current setup as almost identical to those earlier periods.
With Bitcoin dominance now losing support, analysts suggest that the rotation is already underway. Traders following these signals are preparing for the possibility of another altcoin season that aligns with the repeating cycle. Historical precedent indicates that this stage may be entering its strongest phase.
