Bitcoin's dominance is declining, with technical signals aligning with historical altcoin season patterns. Bitcoin's market share has touched a multi-year resistance level around 64%, accompanied by a bearish engulfing monthly candle reversal. A new bearish MACD crossover reflects the technical alignment seen before the altseason surge in 2021. Historical patterns suggest that a capital rotation from Bitcoin to other coins may occur in the coming months. Bitcoin's dominance has decreased after reaching a long-term resistance area, with multiple technical signals confirming this trend. The monthly chart shows a decisive bearish engulfing candle, a pattern that last appeared before the major crypto world season of 2021. The multi-year resistance holds, according to analysis prepared by Merlijn The Trader, as Bitcoin's dominance reached a multi-year descending resistance line before turning downward. This resistance zone has restricted upward movements multiple times since 2017. The recent rejection occurred after dominance reached near the 64% level, closing lower this month. Source: X. Further analysis shows that the monthly bearish engulfing candle marks a strong reversal, engulfing the previous month's gains. Similar candle patterns were recorded in mid-2020, just before the sharp decline in dominance. This trend coincides with the strong rebound in the altcoin market. The moving average convergence divergence ( MACD ) indicator on the monthly timeframe shows a new bearish crossover. This occurs when the MACD line crosses below the signal line, indicating a potential shift in trend momentum. The last bearish MACD crossover in 2021 also followed a bearish engulfing candle in the resistance area. Following that sequence, Bitcoin's dominance sharply declined as funds shifted to altcoins. In the latest formation, the MACD histogram has turned negative after months of steady movement. This technical alignment reflects the structure seen before the altcoin surge in 2021. The dominant structure resembles previous cycles, showing Bitcoin's dominance fluctuating in a long-term descending pattern. This pattern has persisted for over six years, with each rebound being rejected after reaching the resistance line. The latest rejection is accompanied by stronger selling pressure, as indicated by the size of the bearish engulfing candle. The monthly dominance has fallen from around 62.6% to 60.7%. As the dominance trend declines, this setup aligns with the same market conditions seen in previous altseasons. In 2021, altcoins gained market share within months after the pattern formation. Bitcoin's dominance represents the total market share of Bitcoin within the crypto assets market. A decline in this indicator typically suggests that capital is flowing into other coins. When technical indicators align with previous cycle patterns, actual market movements will depend on broader conditions. Historical analysis shows that rebounds in other coins can develop rapidly during periods of declining dominance. The combination of multi-year resistance rejection, bearish engulfing candles, and bearish MACD crossovers previously marked the beginning of such trends.