Bitcoin (BTC) is showing signs of stress at the $65,000 support level, as market sentiment begins to shift across the crypto landscape. After a powerful rally earlier this year, the leading cryptocurrency is now grappling with growing distribution pressure from miners and short-term holders, while key indicators suggest that Bitcoin’s dominance in the market is starting to waver. This development could be the early signal of a long-anticipated altseason—where capital flows away from Bitcoin and into altcoins, giving them room to rally.

At press time, Bitcoin’s market dominance had dropped to 63.3%, slightly retreating after a steady rise since mid-March. Historically, the 64% dominance level has acted as strong resistance, repeatedly halting Bitcoin’s upward dominance trajectory. Now, the failure to break above that level could be more than just a technical pause—it might reflect a subtle but critical shift in investor sentiment. A weakening of Bitcoin’s dominance often precedes a capital rotation toward altcoins, and traders are beginning to take notice.

On the price front, Bitcoin is treading a narrow line. While it hasn’t broken down from the $65,000 level, there are warning signs. The Coin Value Days Destroyed (CVDD) model highlights $66,300 as a short-term support level, with a more significant floor near $61,000. If Bitcoin breaches these bands, it could signal increasing downside risk—not only for BTC but also for overall market confidence. The charts, particularly the Alpha price bands, suggest a period of consolidation and possible redistribution. This mirrors earlier market cycles where Bitcoin stalled and capital rotated into the altcoin sector.

Adding to the pressure, data shows that miners and short-term holders (STHs) are gradually distributing their coins, locking in profits after recent gains. This behavior places additional weight on the price, potentially preventing BTC from staging an immediate rebound. Meanwhile, long-term holders (LTHs) have yet to resume aggressive accumulation. Their typical buy zones remain inactive, indicating a wait-and-see approach that’s often seen in transitional phases of the market cycle.

From a sentiment standpoint, Bitcoin appears to be caught between the “anxiety” and “hope/denial” zones—a region often associated with uncertainty and minor corrections. Historically, these zones have served as preludes to broader market redistribution or even trend reversals. If LTHs remain on the sidelines and short-term profit-taking continues, Bitcoin could see further consolidation before it finds a definitive direction.

Against this backdrop, altcoins are beginning to stir. With Bitcoin dominance facing repeated rejection near 64%, and BTC price struggling to reclaim momentum, the conditions for an altcoin rally are forming. A sustained dip in Bitcoin’s dominance, paired with sideways price action, typically opens the door for altcoins to shine. Traders looking to front-run the next cycle are already eyeing this shift as a potential setup for an “October altseason” scenario.

While it’s too early to call it definitively, the signs are mounting. Past altseasons have often been preceded by similar market setups: Bitcoin entering a consolidation phase, dominance pulling back from a peak, and traders diversifying into lower-cap assets. Should this trend continue, the coming weeks could witness capital gradually flowing into altcoins like Ethereum, Solana, Avalanche, and others—leading to significant gains across the board.

Still, market watchers caution that timing remains key. Bitcoin’s next move will likely dictate the pace and scale of any altcoin rotation. A sharp BTC breakdown could trigger broader market panic, pulling alts down in tandem. Conversely, if Bitcoin stabilizes between $61K and $66K, while dominance continues to decline, it may offer the perfect conditions for altcoins to take the spotlight.

In essence, we’re entering a critical period. Bitcoin’s performance over the next two to three weeks will determine whether this is just another minor correction or the start of a larger capital redistribution across the crypto market. If dominance continues to decline and Bitcoin holds its ground, altseason may be more than just hype—it might be closer than anyone expected.