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Altcoins Could Have a Field Day If Bitcoin Fails This Test

A Bitcoin getting shattered with a form of lightning

Altcoins Could Have a Field Day If Bitcoin Fails This Test

In Brief

  • • An Analyst says Bitcoin dominance has dropped, which previously led to an altcoin rally. 
  • • Bitcoin is attempting to reclaim dominance, which will decide the fate of altcoins.
  • • Despite prolonged weakness, some indicators suggest altcoins may soon break out.

Altcoins have been suppressed by Bitcoin for most of the time that cryptocurrencies have existed. This suppression may be about to break for this cycle, giving way for altcoins to experience some rally which some investors believe is long overdue.

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According to crypto analyst Michaël van de Poppe, Bitcoin Dominance, the metric that measures how much of the crypto market Bitcoin accounts for, has broken below the 20-Weekly Moving Average (MA) in a pattern that resembles that of 2019. He expects bitcoin to follow in the path of this pattern and lead to an altcoin rally. 

Bitcoin’s dominance dropped temporarily in 2019, allowing some top altcoins to accelerate and outperform. Although it was short-lived, it is seen as one of those pivotal moments in the history of cryptocurrencies when altcoins enjoyed a drop in Bitcoin’s dominance, but will it happen this time?

Bitcoin Fights to Regain Control

While Bitcoin Dominance is manifesting weakness by breaking below the 20-Weekly MA, the asset isn’t giving up easily. It is currently fighting to reclaim the lost MA which is now a resistance, failure of which will lead to altcoins entering a rally. 

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Even if Bitcoin breaks through the resistance, Poppe believes it isn’t over for altcoins as this was also seen in 2019, but the altcoin rally happened all the same.

The crypto market has anticipated an altcoin season for long, which has been delayed mainly because Bitcoin has not maintained a clear bullish pattern that concluded properly. It is as Bitcoin concludes its rally that money starts to flow into altcoins starting with the large caps and then other altcoins.

With the shift in the pattern previously observed, some analysts say that the former 4-year cycle is broken and no longer plays out. This has made bitcoin’s rally seemingly incomplete because experts expected it to rise much higher than the peak of 2025 at $26.000. Despite the seeming failure of the cycle, Poppe seems to believe that altcoins could rally, leaving Bitcoin behind.

2026 Could be Good for Altcoins

While Q4 2025 has been bad for Bitcoin, altcoins have suffered even more. However, the year 2026 may be good for altcoins, as some indicators have suggested that they may be about to reach a time of trend reversal.

After over six months of a downtrend, an analyst says the assets may be getting ready to break the trend, with breakouts above the 200 Moving Average (MA) in the coming days. A key indicator, the Russel 2000 had also earlier indicated that altcoins could soon break out.

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