The crypto market is charging towards a new all-time high, powered by a strong rally in altcoins and boosted investor confidence. With Bitcoin’s market dominance slipping and momentum indicators turning bullish, the stage is set for further gains.

Policy Boost Sparks Optimism

Investor sentiment surged this week after U.S. President Donald Trump signed an executive order permitting cryptocurrencies to be included in 401(k) retirement plans. This move is being hailed as a major step towards mainstream adoption, giving both retail and institutional investors more confidence in the market’s future.

By opening up a regulated pathway for crypto to feature in retirement savings, the decision has injected a fresh wave of optimism across the industry. It has also provided another push to an already rising market, where altcoins are now taking centre stage.

Crypto Market Breaks Key Levels

The total cryptocurrency market capitalisation (TOTALCAP) has staged an impressive rebound. After testing the $3.65 trillion horizontal support, the level of its previous all-time high, the market bounced sharply and looks set to build on these gains.

Such retests often serve as a strong base for a renewed rally. If current momentum continues, TOTALCAP could form a bullish engulfing candlestick on the weekly chart, a technical signal often seen at the start of sustained uptrends.

Analysts are now eyeing $4.5 trillion as the next major target. This level coincides with the resistance trendline of an ascending parallel channel that has been in play for months. A successful break could even push the market toward $4.55 trillion in an extended move.

Technical indicators are backing the bulls. The Relative Strength Index (RSI) remains above 50, a sign of strength, while the Moving Average Convergence/Divergence (MACD) is firmly in positive territory. Both point to continued upward momentum.

On shorter-term charts, TOTALCAP appears to be in the fifth and final wave of a rally that began on 22 June. If resistance is cleared soon, the final leg of this wave could take the market to fresh highs before any significant pullback occurs.

Bitcoin’s Market Share Slips

While Bitcoin remains the largest cryptocurrency by market cap, its dominance (BTC.D) is falling. After peaking at 66.03% on 25 June, Bitcoin’s market share began to slide. A short-lived recovery between 22 July and 2 August failed to reverse the trend, and BTC.D is now moving towards its 21 July low.

The current wave structure suggests Bitcoin dominance is also in its fifth and final wave of decline. The first target lies at 59.15%, based on a key Fibonacci retracement level. If the downward move extends further, BTC.D could drop to 57% before a meaningful rebound.

A fall in Bitcoin dominance generally signals that altcoins are outperforming, a trend that has been evident in recent weeks. As long as BTC.D continues to weaken, altcoin season is expected to remain in full swing.

What’s Next for the Market

With bullish technicals, supportive macro developments, and a shift in market share towards altcoins, conditions are favourable for further upside. Analysts believe a new all-time high for the total crypto market cap is imminent, with a correction unlikely until at least the $4.5 trillion mark is tested.

Altcoin traders, in particular, could benefit from the current environment, as capital continues to rotate away from Bitcoin. However, once Bitcoin dominance reaches its downside targets, a partial shift back towards BTC could occur, cooling the altcoin rally.

For now, the message from the charts is clear: momentum is on the bulls’ side, investor confidence is rising, and the path to higher prices is open. The combination of technical strength and positive news flow is giving the market exactly what it needs to push past its previous limits.