Bitcoin Struggles for Momentum as Dominance Hits Critical Resistance Levels

• Bitcoin dominance faces key resistance at 60%, with altcoins showing signs of accumulation ahead of a potential breakout.
• The RSI suggests neutral momentum; Bitcoin dominance might consolidate further unless a breakout occurs soon.
• Key support zones near 50.98% and 50.17% could trigger selling pressure if Bitcoin dominance fails to hold above them.

Bitcoin’s dominance ($BTC.D) has shown signs of struggle since November 2024. Altcoins have been in an accumulation phase, with investors awaiting a major shift. The breakout point, long anticipated, could materialize in the next 1-2 weeks, potentially driven by Ethereum’s ($ETH) price action. However, this market trajectory remains uncertain. A failure to break key resistance zones could set the stage for a renewed downtrend.

Market Struggles at Critical Resistance

Bitcoin dominance has hovered around the 60% level, encountering significant resistance near the Fibonacci 0.65–0.618 retracement zone. This area has served as a supply zone historically, pushing prices lower after recent attempts to break above. Despite multiple breakouts, Bitcoin has struggled to maintain momentum above 58.81%. If the 60% level proves insurmountable, the dominance could face further rejection, leading to renewed selling pressure.

The RSI, a key indicator of momentum, currently stands at 51.18. This reflects neutral market conditions, neither bullish nor bearish. Additionally, the relative weakness in the RSI suggests a potential slowdown in buying pressure. Hence, Bitcoin dominance may continue consolidating within its current range, awaiting a breakout in either direction.

Support Levels in Focus

Horizontal support zones at 50.98% and 50.17% remain key. These levels have not been tested since mid-2023. A sustained breakdown below these zones could trigger selling pressure. If the market fails to hold above these levels, further downside could be imminent. Notably, the Fibonacci 0.5 retracement level of around 55% provides an intermediate support zone, reinforcing the case for a potential downside.

However, Bitcoin’s dominance is not without bullish potential. The market has respected an ascending channel since mid-2022. A rebound from the lower boundary of this channel suggests that bulls remain active. If Bitcoin’s dominance breaks above 60%, the next resistance point could push it toward higher historical levels.