- BTC Dominance Shows Bearish RSI Divergence
- Altcoins May Surge as Bitcoin Stalls Below $86K
- Key Resistance Holds; $80K Retest Still Possible
Bitcoin (BTC) continues to trade in a tight range between $84,000 and $86,000. While price action remains relatively flat, signs are emerging that Bitcoin dominance may be losing strength. A bearish divergence has formed on the daily chart, often seen as a possible signal for the end of a dominance trend. Historically, such patterns have preceded the beginning of altcoin season.
Key Resistance Levels and Technical Barriers for Bitcoin
Bitcoin has been unable to break through critical resistance at the $86,000 level. According to an observation by market analyst Daan Crypto, BTC faces pressure from three key technical indicators.
These include a descending diagonal trendline, the 200-day Simple Moving Average (SMA), and the 200-day Exponential Moving Average (EMA).The downtrend line formed over the past three months has consistently limited upward movement.
Meanwhile, both the 200-day EMA and SMA, currently near $85,500, act as strong dynamic resistance levels. A close above these would be required to confirm a bullish reversal. Failure to break above them may lead to a retest of support at $80,000.
Bearish Divergence on Dominance Chart and Altcoin Season Outlook
Bitcoin’s dominance, which tracks its share of the overall cryptocurrency market cap, is showing early signs of weakness. According to analysis prepared by Sssebi, the daily chart shows a bearish divergence forming. This occurs when the price or dominance moves higher while the Relative Strength Index (RSI) trends lower.
A falling dominance percentage often coincides with increased strength in altcoins. During previous market cycles, similar divergence patterns were followed by strong rallies in alternative cryptocurrencies. If the trend continues, a drop in Bitcoin dominance could trigger renewed interest across the altcoin market.
Glassnode data shows large Bitcoin holders are still accumulating, and exchanges are seeing outflows. While Bitcoin remains in a correction phase, technical and on-chain trends suggest a potential shift in market momentum could soon favor altcoins.
