- Bitcoin dominance mirrors its 2019 pattern, with resistance at the 21-week MA signaling potential continuation of the downtrend.
- Historical data shows temporary dominance spikes often precede altcoin rallies, led by Ethereum’s market strength.
- Ethereum’s ETH/BTC ratio near 0.034 and steady ETF inflows hint at renewed altseason potential by January 2026.
The cryptocurrency market is buzzing with familiar echoes from the past. Prominent analyst Michaël van de Poppe recently shared a compelling chart on X, highlighting how Bitcoin’s dominance is closely mimicking its behavior from 2019. Bitcoin dominance, which measures BTC’s market cap as a percentage of the total crypto market cap, currently hovers around 59%. This metric is crucial for traders, as a declining dominance often signals capital rotation into altcoins, potentially igniting an “altseason.”
Ethereum Gains Ground as Capital Rotates
In the chart, two highlighted sections draw a striking parallel: one from early 2020 showing a peak followed by a sharp decline, and a recent pattern exhibiting similar consolidation and downside pressure. Van de Poppe notes that there’s been no sustained breakthrough above the 21-week moving average (MA), a key resistance level. Even if it does break higher temporarily, history suggests it’s not a cause for alarm—2019 saw similar fakeouts before dominance trended downward.
This downtrend in dominance implies Ethereum ($ETH) is stepping up. With ETH/BTC trading around 0.034, Ethereum has been grinding higher, bolstered by ongoing ETF inflows and ecosystem developments like layer-2 scaling solutions. As Bitcoin consolidates near $89,000 after its recent breakout, funds appear to be flowing into ETH and other alts. Analysts predict a mini altseason could unfold as early as January 5-12, if BTC faces resistance and dominance dips below 55%.
Ethereum’s Expanding Ecosystem Strengthens Its Case
Looking ahead, a bearish BTC dominance could supercharge the broader market. In 2019, this shift led to explosive gains in altcoins, with ETH leading the charge. Today, with institutional adoption accelerating and AI-crypto integrations on the rise, 2026 might see even bigger moves. However, risks remain—macro factors like interest rates and regulatory shifts could sway sentiment.
Traders should monitor the 21-week MA closely. A confirmed breakdown could confirm ETH’s takeover, paving the way for diversified portfolios to shine. As van de Poppe puts it, the trend is down, and that’s good news for altcoin enthusiasts.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
