Bitcoin has reached the $81,000 level in recent hours as bullish sentiment continues to strengthen. Data from CoinMarketCap shows a monthly increase of 12%, suggesting significant capital inflows into major cryptocurrencies since early April. However, on-chain data paints a parallel picture of a brewing shift in market power.
As Bitcoin dominance declines, the increase in altcoin volume is consistent with the MACD signal.
In a May 9 QuickTake post, cryptocurrency analysis group XWIN Research Japan reported that Bitcoin dominance (BTC.D) continues to decline despite recent significant price gains. According to market experts, BTC.D initially recorded a strong upward trend, rising by around 60% in 2026. This move was driven by unparalleled interest in Bitcoin, highlighted by increased inflows into spot Bitcoin ETFs, institutional accumulation, and macro uncertainty.
However, Bitcoin dominance has recently been on the decline, suggesting capital is circulating into altcoins. Interestingly, XWIN Research highlights an update shared by fellow analyst CryptoOnChain, who recently posted about the occurrence of an “increasing trend in altcoin trading volume.” This is a signal that appears when 30-day altcoin trading exceeds the 365-day average as a percentage of CEX volume (Others vs. Top 5).
This observed rotation is also well reflected in price movements. While Ethereum (ETH) has little price movement, assets such as SUI and SOL have recorded significant gains of 15.83% and 10.53%, respectively, in the past week alone. Additionally, XWIN Research Japan reports that these developments are consistent with the recent bearish MACD crossover on the Bitcoin dominance chart. Analysts now say this could signal a change in market structure rather than just a technical signal.
BTC’s decline in dominance could be the next bullish signal for the cryptocurrency market
In other developments shared by XWIN Research, on-chain indicators suggest that the broader Bitcoin market remains in the early stages of a bull cycle. While metrics such as profit/loss margin and market-to-realized value (MVRV) ratio have yet to reach previous cycle highs, long-term Bitcoin holders continue to see relatively low selling pressure.
In particular, the previous decline in Bitcoin dominance led to explosive altcoin rallies as observed in 2017 and 2021, marking a pivotal moment for the broader market. Therefore, a continued decline in Bitcoin dominance or a resumption of its upward trend will have a significant impact on the direction of the market during these early bullish phases.
At press time, Bitcoin is trading at $80,724. Meanwhile, the overall altcoin market capitalization amounts to $1.04 trillion.
Featured image from BusinessDay, chart from Tradingview
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