Cryptocurrency dominance metrics show signs of stress beneath calm surface prices. USDT Dominance faced a key resistance level while Bitcoin Dominance broke a critical chart pattern. This signals potential capital rotation, raising the question of whether a new “altseason” is forming for 2026.
While market prices appeared calm, dominance charts revealed underlying stress. USDT Dominance neared a four-year resistance level, and Bitcoin Dominance rolled over after forming a rising wedge. Traders now question if an “Altseason 3.0” is taking shape as the market progresses into 2026.
USDT Dominance reached 9%, a key ceiling that marked cycle turning points in 2022. The weekly chart printed a sharp upper wick, “confirming rejection rather than continuation.” Its RSI climbed near 78, an overbought reading that historically did not sustain at such resistance.
Bitcoin Dominance broke below its rising wedge’s lower trendline, closing near 58.99%. Momentum indicators also softened, with MACD lines curling down. A quick reclaim of wedge support would weaken this bearish read and delay rotation narratives.
Market sentiment recently matched extreme fear levels seen during the COVID crash and the FTX collapse. Bitcoin fell as much as 51% from its October 2025 peak and now trades roughly 46% below that high. Historically, such extreme fear has surfaced near major opportunity zones rather than lasting market tops.
For an altcoin rotation to build, USDT Dominance must keep slipping from resistance. Bitcoin Dominance must also stay heavy after its wedge break. If both conditions hold, liquidity may rotate into higher-beta names, making “altseason 3.0” a live thesis.
