- Bitcoin dominance has broken a four-month uptrend, signaling a potential rotation into altcoins as traders eye lower support zones.
- BTC.D is consolidating near 64% after losing trendline support, with a move toward 62%–63% likely to fuel altcoin momentum.
- A confirmed breakdown in Bitcoin dominance could mark a pivotal shift in market structure, boosting capital flows into altcoins.
Bitcoin dominance has confirmed a negative breakdown, drawing interest across crypto markets, according to crypto expert Clifton Fx. BTC.D is trading at 64.09% on the daily chart, down 0.41 points or 0.64%. This decline comes after a robust four-month positive trend during which dominance increased from 54% in December 2024 to about 65% in April 2025.
Now, with the uptrend broken and a retest underway, traders are closely watching for a decisive move. If the retest fails and dominance continues downward, altcoins could enter a bullish phase. Consequently, the next few sessions remain crucial for market rotation signals.
Dominance Breakdown After a Strong Rally
From December 2024 through April 2025, Bitcoin dominance moved in a clear upward channel. It recovered strongly from December’s 54% lows, gaining around 11 percentage points to peak near 65%. This uptrend held firm through early 2025, with multiple candlestick patterns respecting the ascending trendline. Moreover, the rise was steady, with minimal pullbacks, confirming strong Bitcoin-led momentum.
Source: Clifton Fx
However, April brought a shift in sentiment. Dominance hit resistance at 65% and began to reverse. By late April, it decisively broke below the trendline. This was the first major violation of the multi-month bullish structure. May followed with accelerating losses as dominance slid back to the 64% level. Volume surged during both the December bottom and April top, highlighting key inflection points.
Altcoins Poised as Support Zones Approach
Currently, BTC.D is consolidating after breaking the trendline. Price action hovers near 64%, just above March’s support zones between 62% and 63%. These levels served as consolidation points during the earlier uptrend. Hence, a move into this region could spark further weakness in Bitcoin’s market share.
Additionally, declining Bitcoin dominance often aligns with increased strength in altcoins. Market data now reflects a growing altcoin market cap as BTC.D weakens. Besides, the overall chart structure shows BTC dominance trading within a broader range of 54% to 65%. The present position near resistance supports the probability of continued downside.
