- The chart shows BTC dominance forming a full head and shoulders pattern with each peak reaching the same long trendline.
- Earlier head and shoulders structures on this index produced strong alt-season phases once the neckline broke downward.
- The current pattern mirrors the older cycles and the chart outlines a similar drop path that matches past breakdown moments.
BTC dominance shows a full head and shoulders pattern forming along the same long trendline that capped earlier cycles and the chart now outlines a downward path that mirrors the structure that preceded past alt-season phases.
A Clear Three-Peak Pattern at the Same Trendline
The chart displays three major peaks in BTC dominance. Each peak reaches the same long trendline drawn across several cycles. The structure matches the classic head and shoulders formation shown in the comparison diagram placed in the upper right corner. The left shoulder forms on the first rise. The head forms as the index creates a higher peak. The right shoulder then forms with a peak close to the height of the first shoulder.
Past cycles on the chart show the same formation. The earlier structure also touched this long trendline. Once the neckline broke, BTC dominance fell sharply. The chart labels this earlier period as alt-season. The decline opened the door for stronger altcoin performance across the market.
The current index now sits at the lower boundary of its neckline. The slope of the neckline matches the earlier structure. The black sketched path on the right side of the chart shows the possible direction if the pattern repeats. This path points downward into levels reached during the last alt-season.
Earlier Structures Led to Major Alt-Season Phases
A previous head and shoulders structure marked a major turning point. The chart shows the earlier formation in full detail. Peaks formed in the same sequence. A neckline carried across the structure. Once BTC dominance lost that level, the drop accelerated. Alt-season followed as funds rotated into altcoins.
The chart labels the last alt-season with a clear arrow. The drop in BTC dominance created room for capital to shift. The visual structure now matches the earlier moment. The current right shoulder appears completed. The index sits slightly below the trendline that capped each earlier peak.
The overlay of the older structure with the new one shows near identical spacing. The rhythm of the peaks also aligns. Both cycles show a steep rise into the head, a sharp decline to the neckline, a rebound into the right shoulder, and a secondary fall into the neckline again.
Trendline Reaction Suggests a Repeat of Market Rotation
The long trendline plays a central role in the chart. BTC dominance touched it in multiple cycles. Each touch triggered a reversal. That repeated behavior forms the basis of the comparison. The current peak once again met the trendline and then turned downward.
The neckline sits at a rising support line. The index now tests this line. The projected path on the chart shows a decisive break below it. That break would match the earlier pattern almost exactly. The projected decline then mirrors the slope of the earlier alt-season drop.
This structure leads to a key question that shapes trader focus: Will BTC dominance break below its neckline and open the next alt-season cycle that resembles the earlier two drops shown on the chart?
The chart provides only this structural sequence. The alt-season labels show where past declines reached. The pattern now rests on the neckline. If the sequence repeats, the next move fits the same downward course shown in the sketch beneath the right shoulder.
