According to @CryptoMichNL, Bitcoin (BTC) dominance has posted its first major breakdown in three years, suggesting conditions for an altcoin rotation may be forming, source: X post by Michaël van de Poppe on Aug 31, 2025. Traders should validate the signal on the BTC.D weekly chart by confirming a lower low and a weekly close below multi-year trend support and the 200-week moving average before reallocating risk toward altcoins, source: TradingView BTC.D and Binance Academy explanations of Bitcoin dominance and moving averages. Additional confirmation can come from strength in ETH/BTC, SOL/BTC, and the TOTAL2 chart relative to BTC, which are commonly used rotation gauges by market participants, source: Binance Academy overview of market dominance and TradingView market cap indices. Use risk management by scaling entries, prioritizing high-liquidity altcoins, and setting volatility-adjusted stops while the dominance trend develops, source: Binance Academy risk management guidelines. Bitcoin dominance measures BTC’s share of total crypto market capitalization, so a sustained decline often aligns with stronger relative performance in altcoins and changing funding dynamics across BTC and alt pairs, source: CoinMarketCap glossary on Bitcoin dominance and Binance Academy market structure materials.

According to Zac_Pundi, year-to-date (YTD) performance data shows that rotating altcoin holdings into Bitcoin during December 2024 or January 2025, and then shifting back from Bitcoin to altcoins in April, aligns with sector performance trends for maximum portfolio returns. This rotation strategy is based on historical sector outperformance cycles versus the BTC benchmark, as shared by Zac_Pundi on Twitter. Crypto traders should monitor these timing windows closely to optimize gains, as sector rotation remains a key tactic for outperforming Bitcoin in 2025 (source: Zac_Pundi, Twitter, May 9, 2025).