- Bitcoin’s dominance drops below 60%, hinting at capital rotation toward smaller crypto assets soon.
- Analysts spot bearish signals and wedge patterns, suggesting altcoin season may ignite as retail traders return.
The crypto market is showing renewed signs of activity, with several on-chain indicators suggesting the altcoin season could begin this November. After a sharp decline in October, traders are cautiously rotating back into risk assets while Bitcoin’s control over market capitalization begins to weaken.
Bitcoin Dominance (BTC.D), which shows Bitcoin’s share in the total crypto market, has slipped to 59.93%. This level remains lower than the highs seen in June 2025, signaling a potential change in market dynamics. The shift has prompted speculation that capital may soon rotate toward smaller digital assets.
Analyst Matthew Hyland described the trend as weak. In his view, this may signal a decrease in Bitcoin’s overall lead compared to the rest of the market. He said,
BTC Dominance chart looks bearish and has looked bearish for many weeks. The downtrend is favorable to continue therefore this relief rally has been a dead cat bounce in a downtrend.
Bitcoin Dominance Pattern Signals Possible Shift
Another market watcher, Michaël van de Poppe, compared the current setup to late 2019 and early 2020. At that time, Bitcoin’s dominance dropped, recovered for a short period, and then fell again. He suggested that a similar pattern may be forming now, with the possibility of another drop in dominance by the end of this quarter.
Trader Don mentioned a head-and-shoulders pattern forming within the BTC.D chart, often viewed as a bearish reversal signal. If the pattern plays out, money could shift from Bitcoin toward other tokens. The trader noted,
Rotation season might be closer than most think.
Beyond technical indicators, investor psychology plays a key role in timing these rotations. Analyst Merlijn highlighted that such periods often begin when confidence is at its lowest. He noted,
Altcoin season starts where everyone gives up.
The analyst noted a long, narrowing wedge pattern. Past tests of the lower line have been followed by the altcoin season. Merlijn stated,
Same base. Same wedge. Same disbelief. Every previous altseason was born here. Bitcoin cools. Liquidity rotates. It’s time for the real fireworks.
ALTCOIN SEASON STARTS WHERE EVERYONE GIVES UP.
Same base. Same wedge. Same disbelief.
Every previous altseason was born here.Bitcoin cools. Liquidity rotates.
It’s time for the real fireworks. pic.twitter.com/WouuNt0uEB— Merlijn The Trader (@MerlijnTrader) November 9, 2025
Retail Traders Return As Altcoins Show Strength
In addition, weekend trading trends also reflect this shifting sentiment. Several altcoins showed notable gains across different markets, suggesting that retail traders may be returning after months of quiet activity. In the past, such short bursts of momentum have often preceded broader market upswings.
Another factor could be linked to broader monetary policy. The Federal Reserve is expected to restart quantitative easing on December 1. Such a move could lower borrowing costs and encourage investment in higher-risk markets, including digital assets. This may lead to increased participation and trading activity in the sector.
The next few weeks will reveal whether this shift turns into a long-term trend or just a short-term reaction after the recent weakness. Market participants continue to closely watch BTC.D. If it starts trending lower again, altcoins could take a stronger lead in market performance.
