Altcoin Market at Key Resistance as Capital Rotation Begins

According to Swissblock, the altcoin market has reached a critical inflection point, with 75% of altcoins now sitting at resistance levels.

This phase typically determines whether a true “altseason” unfolds or fails. While Bitcoin’s momentum has started to fade, capital is gradually rotating into altcoins—a sign that market conditions may be shifting in favor of higher-beta assets.

Weak vs strong altseasons: what’s the difference?

Swissblock distinguishes between two types of altseasons: weak and strong. Weak altseasons occur when Bitcoin remains dominant, allowing only short, fragmented bursts of altcoin rallies with limited capital rotation. These are characterized by “light green zones” on Swissblock’s Altcoin Vector, where altcoin price gains tend to be isolated and unsustainable.

In contrast, strong altseasons take shape when Bitcoin’s relative strength declines, BTC dominance drops, and capital flows meaningfully into a broad set of altcoins. These “dark green areas” indicate a more systemic shift in market behavior—where altcoins outperform as a group and liquidity flows out of Bitcoin in a risk-on environment.

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Decision point: Bitcoin stalls, altcoin rotation starts

The market now stands at what Swissblock calls a decision point. Bitcoin is showing signs of slowing momentum near all-time highs, and early capital rotation toward altcoins has already begun. Historical data from Swissblock’s chart shows that similar setups in 2021 and 2023 led to strong altseasons—marked by sustained outperformance across a wide array of altcoins.

However, to confirm a full-fledged altseason, the market still needs to see broad breakouts across altcoin charts and a decisive drop in Bitcoin dominance. Until then, the market remains on the edge—poised either for a breakout into a strong altseason or a fade into another short-lived rotation phase.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.