Bitcoin has notched a fresh all-time high, pulling altcoins up with it. But can BTC hold dominance, or will a rotation into alts push BTC.D lower?

Zooming in, Bitcoin [BTC] is consolidating at the $120k support, using it as a launchpad, and validating the structure with back-to-back all-time highs, the latest breaching $123K. 

Q3 Crypto Outlook

However, an intraday pullback of 1.47% signals weak follow-through momentum. The result? BTC’s market cap retraced from $2.46 trillion to $2.41 trillion, marking a $50 billion contraction.

Meanwhile, the broader crypto market tracked this move, slipping from $4.20 trillion to $4.15 trillion, also a $50 billion dip. That means this pullback is almost entirely BTC-driven, with dominance down 0.54%.

This divergence is notable for traders tracking market flows. 

As the chart illustrates, Bitcoin dominance (BTC.D) has carved out a third lower low in the past two weeks, despite BTC itself rallying nearly 6%.

Simply put, while Bitcoin is in a phase of price discovery, capital is rotating into altcoins. Backing this, TOTAL2 (market cap ex-BTC) has breached $1.65 trillion for the first time since 2021, signaling relative strength.