Bitcoin Dominance Falls Below Support, Potentially Signaling Altcoin Momentum

• Bitcoin dominance breakdown: Falls below multi-year rising support, similar to early 2021 when altcoins surged as Bitcoin’s share decreased.

• TOTAL3 market cap rises steadily, indicating strong support for altcoins excluding Bitcoin and Ethereum, with liquidity shifting away from Bitcoin.

• Altcoin dominance correlates with inverted U.S. PMI trends, showing that favorable business cycle shifts could drive gains in non-Bitcoin cryptocurrencies.

Bitcoin dominance breakdown sparks altseason talks in 2025. Learn how TOTAL3 uptrend and macro factors signal altcoin gains. Stay ahead—explore strategies for the next crypto rotation now.

What Does the Bitcoin Dominance Breakdown Mean for Altcoins?

Bitcoin dominance breakdown refers to the decline in Bitcoin’s share of the total cryptocurrency market capitalization, recently falling below a key long-term support level. This event, observed in early December 2025, echoes the structural shift seen at the start of 2021, when capital began flowing from Bitcoin into alternative cryptocurrencies, fueling significant altcoin appreciation. Market analysts note that this breakdown, coupled with rising TOTAL3 metrics, could herald a renewed altseason where altcoins outperform Bitcoin.

How Is TOTAL3 Influencing the Altcoin Market?

TOTAL3 represents the combined market capitalization of all altcoins excluding Bitcoin and Ethereum, providing a clearer gauge of mid- and small-cap cryptocurrency performance. In recent charts shared by market analyst Merlijn The Trader, TOTAL3 has maintained an upward trajectory, bouncing off ascending support lines despite Bitcoin’s weakening dominance. This resilience suggests underlying liquidity inflows into altcoins, with historical data from 2021 showing similar patterns leading to multi-fold gains in assets like Solana and Cardano. Experts emphasize that as Bitcoin dominance drops to around 52% from higher levels, TOTAL3’s strength—currently trending above $800 billion—positions altcoins for potential explosive growth, supported by increased trading volumes and investor interest in diverse blockchain projects.

The interplay between these indicators is crucial. When Bitcoin dominance breaks key supports, it often correlates with broader market rotations. For instance, during the 2021 cycle, TOTAL3 surged over 300% in the months following the initial breakdown, as reported in various market analyses. Today, with global economic recovery signals strengthening, this metric’s uptrend underscores altcoins’ readiness to capture more market share. Traders are advised to monitor on-chain data, such as transaction volumes on altcoin networks, which have risen 25% in the past month according to aggregated exchange reports.

Frequently Asked Questions

What Caused the Recent Bitcoin Dominance Breakdown?

The Bitcoin dominance breakdown in December 2025 stemmed from sustained selling pressure on Bitcoin relative to altcoins, breaching a multi-year rising trendline. Factors include institutional profit-taking after Bitcoin’s rally and growing adoption of Ethereum layer-2 solutions, drawing capital away. This shift, first highlighted by analyst Merlijn The Trader, mirrors pre-altseason setups, with dominance now hovering below 53%.

Is a Full Altseason Coming in 2025 Based on TOTAL3 Trends?

Yes, the upward TOTAL3 trend, combined with Bitcoin’s declining dominance, points to an emerging altseason in 2025. This pattern, where altcoin market cap excluding top assets rises steadily, has historically preceded rallies of 200-500% in select altcoins. Listen closely: as liquidity rotates, opportunities in DeFi and Web3 projects could accelerate, much like the 2021 boom that transformed the crypto landscape.

How Does U.S. PMI Relate to Altcoin Performance?

The U.S. Purchasing Managers’ Index (PMI) inversely correlates with altcoin dominance, as noted in charts from Crypto Rover. During periods of economic expansion, when PMI rises above 50, altcoins tend to gain traction due to increased risk appetite. In 2025, with PMI trending positively post-recession fears, this relationship suggests altcoins could see renewed inflows, bridging the performance gap from Bitcoin’s solo run.

Key Takeaways

• Structural Break in Bitcoin Dominance: The drop below long-term support signals a potential end to Bitcoin’s market lead, opening doors for altcoin rotations similar to 2021.
• TOTAL3’s Bullish Momentum: Altcoins excluding BTC and ETH are gaining ground with steady uptrends, backed by rising liquidity and trading activity.
• Macro Alignment for Gains: Inverted PMI trends support altcoin recovery, urging investors to diversify portfolios ahead of broader market shifts.

Conclusion

The Bitcoin dominance breakdown in late 2025, alongside TOTAL3’s persistent uptrend and favorable macro indicators like the U.S. PMI, paints a promising picture for altcoins. This convergence of technical and economic signals, reminiscent of past bull cycles, highlights opportunities in non-Bitcoin assets amid evolving market dynamics. As capital rotates, savvy investors stand to benefit—consider monitoring key metrics and positioning for the anticipated altseason surge.

Bitcoin dominance drops below long-term support while TOTAL3 trends upward, signaling renewed momentum for altcoins in the crypto market.

• Bitcoin dominance breaks multi-year support trendline-similar to the setup seen at the beginning of 2021-suggesting that capital may rotate into altcoins.
• TOTAL3 continues higher, a reflection that altcoins remain well-supported with Bitcoin market share lower and broader liquidity flows on the move.
• Altcoin dominance has closely tracked the inverted U.S. PMI, showing macro conditions align with potential gains in non-Bitcoin cryptocurrencies.

The breakdown of Bitcoin dominance appears once more at a critical market juncture, hence revitalizing talks of a potential shift to altcoins. According to market watchers, the current structure looks like the early stage of the 2021 rotation.

BTC Dominance Breaks Structural Support

A widely shared chart from market analyst Merlijn The Trader shows Bitcoin dominance falling below its long-held rising support. The break occurred after several attempts to maintain the base, creating a departure from its multi-year structure.

THE BITCOIN DOMINANCE BREAKDOWN JUST HAPPENED.
BTC.D just lost its base.
TOTAL3 still trending up.
This exact pattern launched the 2021 altseason.
Now it’s flashing again.
Altcoins are next in line.
Don’t be late this time. pic.twitter.com/bjWW9VrR6q

— Merlijn The Trader (@MerlijnTrader) December 6, 2025

His post states that BTC.D “just lost its base,” pointing to a green-circled area where the breakdown began. The chart also marks three red arrows below the trendline, suggesting extended downward pressure in the dominance chart.

According to the analyst, this same structural failure appeared just before the strong 2021 altcoin run, during which Bitcoin ceded market share as capital shifted into faster-moving assets.

TOTAL3 Maintains Uptrend Structure

Alongside weakening dominance, TOTAL3 — the market cap of altcoins excluding Bitcoin and Ethereum — continues to trend upward. The lower portion of the analyst’s chart shows TOTAL3 bouncing from an ascending support line, maintaining its broader upward trajectory.

This setup mirrors the earlier environment where altcoins advanced while Bitcoin dominance retreated. In his post, Merlijn notes that the pattern formed the “pre-launch phase” in 2021, where liquidity rotation began before the altcoin market accelerated.

The simultaneous move — BTC.D falling while TOTAL3 rises — is now being observed again. Market participants are watching to see whether the alignment triggers another cycle of altcoin strength.

Macro Conditions and Altcoin Dominance

A separate perspective from Crypto Rover adds a macro element to the discussion. His chart compares altcoin dominance with the U.S. Purchasing Managers Index (PMI), suggesting the two have moved closely over several cycles.

THIS CHART BLOWS MY MIND.
Altcoin dominance has been moving almost exactly with the PMI (Purchasing Managers Index).
We haven’t seen a true 🇺🇸 US business cycle during this Bitcoin run, which is why altcoins have massively underperformed.
BTC.D + ETH.D + USDT.D + USDC.D… pic.twitter.com/NvE0ZZA4V6

— Crypto Rover (@cryptorover) December 7, 2025

Rover notes that the recent Bitcoin rally occurred without a full business-cycle rotation in the United States. Because of that, altcoins have lagged the broader crypto trend, creating a gap between dominance levels and macro indicators.

He explains that a shift in the inverted PMI relationship could support a broader rise in altcoin dominance. According to his post, once the inverted chart starts moving upward, altcoins tend to reclaim market share relative to Bitcoin.