- Bitcoin dominance shows bearish divergence below key 64.31% level.
- Altcoin Season Index climbs to 39, hinting at rising altcoin interest.
- RSI bounce signals short-term relief, but trend still favors altcoins.
Bitcoin’s dominance in the crypto market is showing signs of decreasing progress, with technical indicators pointing to bearish divergence even as the metric attempts a short-term recovery. Data from the end of July through the beginning of August shows a shift in market trends that could support continued altcoin strength in the weeks ahead.
Bitcoin’s dominance recently peaked near 54.5% before declining, dropping to 61.2% during the latest analysis period. A review of the Relative Strength Index (RSI) on the BTC dominance chart shows a difference, while the dominance metric reached new highs, the RSI formed lower highs.
The first divergence took place in the fourth quarter of 2024 and was followed by a decline in BTC dominance. Before the pullback, a new divergence formed between late June and early July 2025. The pattern repeated as the dominance level failed to sustain its rally, leading to a sell-off accompanied by increased trading volume.
Although the RSI is emerging out of oversold territory, having had some positive effect, the dominance indicator still remains below this 64.31% level, as indicated by a horizontal technical marker known as confirmation beneath here. So long as BTC remains below this line, bearish momentum might trend upwards, confirming the divergence as a case of the market rotating into altcoins.
Although the RSI has emerged in the oversold situation, which means that a positive rebound should fade in the short-term perspective, the dominance measure has not yet exceeded the 64.31 percent point.
Altcoin Season Index Rises Amid Shifting Market Conditions
Alongside weakening BTC dominance, the Altcoin Season Index (ASI) has increased to 39 out of 100, signaling a minor change in investor focus toward altcoins. According to data from CoinMarketCap, the ASI has risen from 23 over the past month, showing a continuing gain even though the market remains within Bitcoin season limits.
Despite the RSI already coming out of oversold and seeing some positive impact, the dominance quality continues to be lower than this 64.31% mark, as signified by a horizontal technical indicator called confirmation under here.
As long as BTC is below this line, bearish momentum could trend upwards, confirming the divergence as a case of the market rotating into altcoins. Even though the RSI has just appeared in the oversold condition, that is an indication that a bullish run must taper off. In a short-term view, the dominance index has not surpassed the 64.31% mark as yet.
