- Bitcoin dominance faces rejection at resistance, signaling a potential altcoin surge if it breaks below the rising wedge.
- BTC.D consolidates near 61.75%, with 65.58% as a key resistance level—breaking it may strengthen Bitcoin’s market share.
- A breakdown in Bitcoin dominance could ignite altcoin season, reshaping market trends and favoring altcoin rallies.
On the weekly chart, Bitcoin Dominance (BTC.D) is displaying a rising wedge pattern. This configuration typically signals a possible break to the downside. The altcoin season might start shortly if this happens. Since early 2022, the dominance of Bitcoin has been on an upward trajectory. Whereas the upper limit provides resistance, the lower boundary provides support. At 61.40%, dominance is currently being rejected close to the upper resistance level.
Bitcoin’s Strength and Market Impact
Bitcoin dominance increased after a sharp decline before 2022. This reversal signaled Bitcoin’s strengthening market position over altcoins. Higher lows and higher highs confirmed a bullish structure. The dominance trend remained intact despite market consolidations and corrections.
However, a breakout above resistance could push Bitcoin’s market share higher. Conversely, breaking below the lower trendline may trigger an altcoin resurgence. Bitcoin dominance affects the entire cryptocurrency market. A rising BTC.D typically weakens altcoins, while a decline favors altcoin rallies.
Key Resistance Level at 65.58%
On the daily chart, Bitcoin dominance stands at 61.75%, consolidating near crucial resistance. An essential resistance level exists at 65.58%. This psychological barrier plays a pivotal role in Bitcoin’s market strength. A previous breakout attempt faced rejection, causing a retracement. Despite this, BTC.D found support above 60.00% and recovered.
The dominance of Bitcoin has repeatedly tested the 65.58% resistance. A breakout has been averted by strong selling pressure. Bitcoin’s market share may increase further if BTC.D reaches this threshold, which would have a detrimental effect on altcoins. Alternatively, altcoins can take over the market if they move below support..
The market remains within a defined range, fluctuating near historical support and resistance. The dominance trendline is still intact, suggesting Bitcoin’s continued strength. A rejection at 65.58% could trigger a shift towards altcoins.
Additionally, breaking the rising wedge to the downside will confirm an altcoin season. The cryptocurrency market remains highly reactive to BTC.D movements. Any major breakout or breakdown could reshape market dynamics entirely.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
