Bitcoin dominance is beginning to soften, according to the latest analysis shared by Bitcoinsensus. Their chart shows a decisive downturn in BTC’s market share, even as price action across the broader market remains mixed. Historically, weakening dominance during a late-cycle consolidation has often preceded stronger performance from Ethereum and high-liquidity altcoins.
The analysts note that capital rotation is becoming visible, with money gradually flowing out of Bitcoin and into ETH and other large-cap assets. This rotation aligns with the broader market structure that typically forms ahead of euphoric phases where altcoins begin to outperform.
ETH/BTC Ratio Attempts a Breakout
Supporting this trend shift, the ETH/BTC ratio appears poised to continue its upward push. The chart shared by Bitcoinsensus illustrates a strong bounce, suggesting traders are increasingly positioning for Ethereum strength relative to Bitcoin.
If this ratio continues higher, analysts believe we could be entering an early altseason setup, a period when Ethereum absorbs liquidity first, followed by a broader altcoin rally. Signals like this have historically preceded aggressive upside moves across the market, especially when Bitcoin enters consolidation phases.
BTC Range-Bound as Demand Lags Behind
The latest chart from Cointelegraph highlights Bitcoin mirroring a pattern seen after the 2022 peak. BTC has spent a full month trading below the short-term holder (STH) cost basis, signaling that short-term investors remain under pressure.
⚡ INSIGHT: $BTC is mirroring post-2022 peak behavior, sitting below STH cost basis for a month.
Price pinned in an $81K–$89K range as new demand struggles to materialize. pic.twitter.com/aSg285tsF1
— Cointelegraph (@Cointelegraph) November 28, 2025
Price is currently pinned between $81K and $89K, a range that reflects limited new demand entering the market. Glassnode’s risk indicator shows that active investor pricing, true market mean, and realized price levels are compressed, a structure typical of equilibrium phases where the market waits for liquidity or catalysts to break the stalemate.
This environment often sets the stage for altcoins to outperform in the short term, especially when Bitcoin dominance softens simultaneously.
Altseason Conditions Begin to Form
With Bitcoin dominance weakening, ETH/BTC gaining strength, and BTC holding inside a narrow range, the ingredients for a broader altcoin rotation are taking shape. Analysts warn that if the capital shift intensifies, the market could enter a more accelerated phase characterized by:
- •Strong ETH-led rallies
- •Sharp breakouts in high-liquidity altcoins
- •Market euphoria as dominance falls further
For now, Bitcoin remains steady but muted, a setup that historically favors the start of altseason cycles.