Bitcoin Dominance Exhaustion Hints at Altcoin Rally as SOL, ADA, AVAX Gain Momentum

Bitcoin dominance exhaustion now signals a shift in market momentum. The BTC.D index has reached a level that, in past cycles, marked the point where Bitcoin’s lead faded and altcoins began to take flow.

Analysts tracking capital movement said a break below this trendline often triggers liquidity rotation into high-beta assets such as Solana (SOL), Cardano (ADA), and Avalanche (AVAX).

Altcoin market capitalization excluding Bitcoin and Ethereum has pushed to a fresh monthly high, showing that new money is entering the broader crypto market. While Bitcoin holds firm above $120K, traders see a buildup of strength beneath the surface. Each rally attempt from here could draw more capital toward the assets that move faster once Bitcoin dominance weakens.

The structure remains the same: Bitcoin provides stability; altcoins chase expansion. If dominance rejects this resistance as it did in 2021, the market could enter the first true altcoin season of 2025.

Bitcoin remains well-supported even after its latest pullback. Strong demand sits between $120,000 and $118,000, creating a solid base for the next upward phase.

There are several support layers, and the higher structure remains intact. This means Bitcoin can bounce from any of these areas without breaking its broader uptrend.

Once the breakout occurs, the next major price objectives are $134,000 and $148,000. These levels line up with previous Fibonacci extensions and prior resistance areas.

The next upward leg could be important, pushing Bitcoin more than 20% higher from its current range once momentum returns.

As Bitcoin dominance retesting trendline draws market attention, traders are eyeing a shift toward altcoins in focus for Q4 2025.

Historically, when BTC.D rejection occurs, funds move into high-momentum tokens, in this instance, Solana (SOL), Cardano (ADA), and Avalanche (AVAX), the core of this cycle’s altcoin season 2025 narrative.