Bitcoin Dominance Signals Potential Altseason as Altcoins Gain Ground

Bitcoin price support coincides with a shift in trading leadership toward altcoins, with Bitcoin dominance poised for a technical breakout.

Rich by Coin

2026-01-10

Bitcoin’s price support has coincided with a quiet shift of trading leadership toward altcoins, and whether this momentum continues depends on a technical inflection point in Bitcoin dominance. AMB Crypto reported on January 10 that the market structure is undergoing a noticeable change, with Bitcoin’s share of volume slipping from about 45–50% to 30–35%, while altcoins’ share rose above 55% and now sits around 60–65%. During the period, BTC’s price rallied in early 2025, but volume did not keep pace, suggesting profit-taking and capital rotation rather than fresh buying inflows. ETH’s share of volume rose gradually to 20–30%, but did not absorb all speculative and narrative-driven money concentrated in small- to mid-cap alts.

On-chain data showed usage-based differences; Ethereum’s cumulative addresses rose from about 300 million to 370 million, while daily active addresses remained relatively muted. The number of wallets increased, but actual trading participation remained modest. On the other hand, the BNB chain surpassed 730 million addresses, with daily active users around 4.4 million, maintaining leadership in activity and liquidity. Frequent trading kept volume and liquidity sustained, and the relaxation of fees also acted positively in this cycle.

Tron (TRX), NEAR, and Solana (SOL) also maintained activity at stable levels, supporting a steady trading flow. Technically, Bitcoin dominance is compressing within a falling wedge pattern, with the high set lower and the bottom support intact, implying that further volatility reductions increase the risk of a sharp one-way breakout. If the top resistance is breached, funds could flow back into Bitcoin, potentially weakening alts; conversely, a downside breakout could see a larger share of non-top-10 alts expanding from about 7.09% to 16.24%. AMB Crypto noted that the recent uptick in altcoin trading volume reflects real usage and repeat trading rather than just FOMO, and the direction of dominance will be the decisive signal for whether altcoins stay strong.