Bitcoin's market dominance is nearing a critical resistance level, historically leading to significant reversals. Currently at a yearly high of 63.2%, data from CoinMarketCap shows it is testing a descending trendline. A technical analysis suggests a potential drop to 40%, possibly triggering an altcoin rally.
A decline in Bitcoin dominance typically benefits altcoins, signaling their outperformance. Ethereum, Solana, and XRP could see price increases. Tokens like Ethereum, XRP, Cardano, Chainlink, BNB, and Litecoin may attract early retail interest.
However, the current market differs from past bull runs due to the saturation of altcoins. Sectors like AI, RWA, and DeFi may gain traction, but careful selection is crucial. The impact of Spot Bitcoin ETFs also changes the landscape, potentially limiting liquidity flows into altcoins compared to 2017 and 2021.