Bitcoin ($BTC) has recently gone through a plunge in terms of market dominance. Particularly, the market dominance of Bitcoin ($BTC) has dropped below its 20-week moving average, currently 59.70%. As per the data from Michaël van de Poppe, Bitcoin’s Relative Strength Index (RSI) also indicates momentum shifts. Hence, the present market outlook of Bitcoin highlights that the investor sentiment is leaning toward altcoins.
The #Bitcoin dominance broke beneath the 20-Weekly MA.
It’s quite comparable to the period in 2019 and I think we’ll start to follow that path.
Currently, the Bitcoin dominance fights the crucial resistance of that moving average, and a failure to break through it would signal… pic.twitter.com/ltjfL1gZiL
— Michaël van de Poppe (@CryptoMichNL) December 27, 2025
Bitcoin RSI Signals Room for Volatility as Altcoins Gain Attention
The on-chain statistics reveal that Bitcoin’s ($BTC) dominance has slumped below the 20-week moving average. The respective scenario is considerably analogous to that which occurred back in 2019. At that time, the dominance of the flagship cryptocurrency initially dropped before the massive altcoin bull runs, reshaping the wider crypto market.
Additionally, during the 2019 cycle, the leading crypto asset witnessed noteworthy resistance while altcoins experienced huge traction. The respective historical comparison boosts the idea that the altcoin sector could be preparing to go through a renewal of strength and investment confidence. At the moment, while Bitcoin dominance is struggling to surpass the 20-week moving average, the failure to do so would lead to a new capital rotation phase.
Simultaneously, Bitcoin’s ($BTC) RSI indicator clarifies that its market dominance is far from being overextended. This leaves a noteworthy room for volatility and could result in a push toward either way. Along with that, if the Bitcoin dominance remains ineffective to reclaim its moving average, the assets in the altcoin market could leverage increased investor attention and liquidity. This scenario goes in line with Bitcoin’s ($BTC) historical patterns, marked by the spike of altcoins during the consolidation phases of Bitcoin.
Altcoin Sector Sees Looming Rally While Bitcoin Dominance Holds at 59.70%
According to Michaël van de Poppe, Bitcoin’s ($BTC) drop below 20-week moving average in terms of dominance underscores a potential trend shift toward the altcoin market. Keeping this in view, a failed effort to reclaim Bitcoin’s ($BTC) 20-week moving average could signify the rotation of capital toward the altcoin. Currently, while the market dominance of Bitcoin sits at 59.70% and altcoins are likely gearing up for a potential rally, the next week could become decisive for investor positioning and market structure.