Crypto Market Hints at Altcoin Rotation with Uncertain Dominance Charts

The cryptocurrency market has been experiencing a mix of calmness on price charts and stress building underneath, as indicated by dominance charts.

USDT Dominance climbed towards a four-year resistance level of 9%, while BTC Dominance formed a rising wedge that broke with a price drop below its lower trendline. The rejection of USDT Dominance at this resistance level could signal stretched defensive positioning and potential unwinding, while the break in the BTC Dominance wedge indicates sustained weakness.

Historically, such dominance chart readings have preceded strong moves back into risk assets, suggesting that capital is crowding into safety too late. The sentiment in the market has also reached extreme fear levels, similar to those seen during previous major downturns and crashes, which often precede significant shifts in market dynamics.

For an altcoin rotation to occur, two conditions must be met: USDT Dominance must continue to slip from resistance and BTC Dominance must remain weak after the wedge break. If both dominance charts weaken together, liquidity may rotate into higher beta names, potentially triggering a meaningful shift in the market.