TLDR:

• Bitcoin dominance nears 68%, a zone that has triggered an altseason in 2017 and 2021.
• Analysts expect capital rotation if dominance is rejected at current resistance.
• Technical charts show a wedge pattern dating back to 2018 nearing a breakout point.
• Altcoin Index at 15 hints at potential upside if market conditions align favorably.

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Crypto markets are showing signs of a potential shift that could spark the next major altcoin rally. Bitcoin dominance has reached a crucial resistance zone that historically marked the beginning of explosive altseason runs. 

Technical indicators are aligning with the four-year crypto cycle patterns that preceded previous alt rallies in 2017 and 2021. 

Market analysts are watching this key level closely, as rejection here could trigger significant capital rotation into alternative cryptocurrencies. The current setup suggests altcoin investors may soon see the momentum they have been waiting for.

Bitcoin Dominance Tests Historical Resistance

Bitcoin dominance currently sits at approximately 65.64% and is testing a major resistance zone between 64.3% and 68%. This level has proven significant in past market cycles, often marking the end of Bitcoin’s outperformance phase. 

📢 Altseason May Be Closer Than You Think#Bitcoin Dominance is testing a major resistance zone — the same level that triggered past altseasons.

A Bearish Order Block + Fair Value Gap (FVG) just formed.
Rejection here could drop dominance by 36%+ 👇

Historically, this level… https://t.co/O0pHticcWM pic./PnIy2KTNsc

— Crypto Patel (@CryptoPatel) June 23, 2025

Crypto analyst Patel highlighted that this resistance coincides with a bearish order block and fair value gap formation on the bi-weekly chart.

The technical pattern shows Bitcoin dominance trapped within a symmetrical wedge that has governed price action since 2018. A rejection at this level could potentially lead to a 36% drop in dominance, targeting the 42-45% range where altcoins historically began major rallies.

According to CryptoRank.io, market volatility saw over $1 billion in liquidations as Bitcoin briefly dropped below $100,000 following geopolitical tensions. Despite the turbulence, the crypto market cap maintains $3.27 trillion with Bitcoin trading around $101,960 and Ethereum at $2,265. 

The Fear and Greed Index registers 47, indicating neutral to fearful sentiment.

Small-cap altcoins are already showing signs of life with notable gainers including AirSwap up 43.9% and USDC gaining 41.8%. The Altcoin Index currently reads 15 out of 100, suggesting room for growth if market conditions shift favorably.

📉 Market Overview

Over the weekend, crypto markets saw over $1B in liquidations as Bitcoin briefly dipped below $100K following renewed tensions between Iran and Israel. The market has stabilized slightly today, but sentiment remains cautious.$BTC: ~$101.96K ↓0.55%$ETH:… pic./DRKexnJPt0

— CryptoRank.io (@CryptoRank_io) June 23, 2025

Cycle Patterns Support Altseason Thesis

The current technical setup aligns with the established four-year crypto cycle that has reliably predicted major market phases. 

Previous altseasons in 2017 and 2021 began when Bitcoin dominance rejected similar resistance levels and capital flowed into alternative cryptocurrencies.

Patel notes that the technical resistance, historical patterns, and cycle timing create a compelling case for altcoin outperformance. 

The projected timeline for this potential shift extends into mid-to-late 2026, following the typical pattern of halving events leading to market peaks and subsequent altcoin dominance.

Analysts suggest that quality altcoin accumulation may be prudent given the current market structure. The technical indicators suggest that momentum could shift rapidly if Bitcoin dominance fails to break through the resistance zone. 

Historical precedent shows that when these setups trigger, the resulting altcoin rallies can be substantial and swift.