- BTC Dominance nears 71%, a key resistance that previously sparked altcoin rallies.
- Analysts see bearish RSI divergence and wedge pattern, hinting at a possible BTC.D reversal.
- Institutional demand drives BTC.D, but a reversal may lead to a fresh altcoin season.
Bitcoin Dominance (BTC.D) is continuing its sharp rise, reaching levels not seen since early 2021. As of this week, it stands at 65.2%, and analysts warn that it is now only around 6% away from a crucial resistance zone near 71%, which has previously marked the start of major altcoin rallies.
BTC Dominance Approaches Multi-Year Resistance Zone
According to an analysis prepared by DaanCrypto on X, BTC.D is “well on its way to the 2019–2021 highs.” The analyst notes that the constant demand for Bitcoin from institutional buyers, including Michael Saylor and inflows into ETFs, continues to push dominance higher. DaanCrypto also stated, “I would not have expected this ratio to get back to 65%+ if you asked me 2–3 years ago, but here we are.”
Other analysts, including Ijaz Awan and Gert van Lagen, observe that BTC.D is approaching a major resistance zone between 71.38% and 73.06%. Lagen highlights the appearance of a rising wedge pattern within this high time-frame resistance area. The Relative Strength Index (RSI) shows bearish divergence, which previously preceded a decline in BTC.D during the 2021 cycle.
Crypto Elites also shared a recurring pattern on BTC.D charts showing multiple past rejections at resistance levels, each followed by a shift toward altcoin gains. These resistance points have consistently triggered sharp downtrends in dominance and supported altcoin rallies.
Market Structure Could Signal Shift Toward Altcoins
Rekt Capital, a widely followed crypto analyst, explained that the closer BTC.D gets to the 71% mark, the higher the chance of a major collapse. The last time BTC.D approached this level, it marked the beginning of a market-wide shift into altcoins. He added that Bitcoin might be entering the final phase of its current macro uptrend.
While Bitcoin remains dominant, supported by steady ETF inflows such as BlackRock’s iShares Bitcoin Trust (IBIT), which recently saw 16 consecutive days of positive movement, retail traders remain cautious. Should BTC.D reverse at this key resistance, it could set the stage for a new altcoin cycle.
