Despite the ongoing correction from its recent all-time high, Bitcoin’s dominance over the rest of the market has continued to hold steady in recent days. Notably, Bitcoin’s dominance in the crypto market has increased steadily in recent days, recently surpassing a significant threshold of 64% and exerting pressure on altcoins across the board.
Although Bitcoin itself recently lost the $105,000 support level in the past 24 hours, the altcoin market witnessed dips throughout last week. However, this period of imbalance between Bitcoin and altcoins may not last much longer, especially as technical analysis suggests the dominance reaching 64% might be a turning point.
Bitcoin Dominance Taps Resistance: Exhaustion Ahead?
Crypto trader Astronomer shared an analysis on X, highlighting the 64% region as a crucial turning point for BTC.D. His chart, which outlines a possible path for Bitcoin dominance, shows that the metric has now entered a wide resistance block between 64.00% and 64.40%. This is important because this is a level that has rejected previous upside attempts throughout the past month.
Even with Bitcoin being the only cryptocurrency to print a new all-time high in recent times, the Bitcoin dominance has found it hard to break above 64% in May, which shows that the trend might be becoming exhausted. Notably, after bouncing just above 63.5% on May 28, Bitcoin’s dominance printed a lower high. The current price behavior mirrors those earlier moves, lacking the bullish strength needed to break higher.
If the projected path in the chart below plays out, the dominance could range slightly before beginning a rollover that takes it into the lower 63% zone and beyond. The trajectory on the chart suggests the decline could steepen in early June and finally open up the door for altcoins to thrive.
Altcoin Momentum Soon With Fading Bitcoin Dominance?
The chart outlook indicates that the Bitcoin dominance rally is nearing exhaustion. Despite recent losses across many altcoins, the projection structure suggests an imminent shift and a potential decline in Bitcoin dominance to 63.45%.
From here, the next step will depend on how Bitcoin reacts at this level. As it begins to unwind, this decline in Bitcoin dominance will likely coincide with an increase in the price of major altcoins, particularly in large market-cap altcoins like Ethereum, Solana, and Dogecoin. As such, this moment of topping out could finally be the early stages of a broader altcoin season.
At the time of writing, data from CoinMarketCap shows that Bitcoin’s dominance is currently at 63.5%, just above the crucial 63.45% point. A breakdown of Bitcoin’s dominance at this point could cascade into an altcoin season. Ethereum, on the other hand, has seen its dominance increase by 2.01% in the past 24 hours to 9.4% at the time of writing. However, the notion of a close altcoin season could crumble if Bitcoin dominance manages to make a monthly close above 64%.
Related Posts
