Skip to main content

Bitcoin Dominance Chart Remains Very High Despite Crash, What This Means For Altcoins

Despite last week’s crash, Bitcoin Dominance (BTC.D) remains significantly elevated, reinforcing its strong position on the charts. This sustained rise in dominance sends a clear message that Bitcoin (BTC) still holds a considerable amount of investor attention, leaving the rest of the market, particularly altcoins, struggling to keep pace. 

Bitcoin Dominance Powers Ahead, Eyes Major Resistance

On May 17, crypto market expert ‘Daan Crypto Trades,’ took to X (formerly Twitter) to share insights on Bitcoin Dominance, highlighting how its continued rise could impact alternative cryptocurrencies. The analyst shared a chart showing that BTC.D has been steadily climbing for almost three years, since mid-2022, after bottoming out near the 39% level. 

Related Reading: Crypto Analyst Says “Altseason Is Dawning” As Bitcoin Dominance Reaches HTF Resistance, What To Expect

Since then, Bitcoin has slowly reclaimed its market share, outperforming altcoins in almost all categories, including price performance and market capitalization. Based on the chart, this momentum has led BTC.D to climb past key resistance levels at 48%, 52%, and, more recently, above 60%. 

Despite a brief retracement this past week, Daan Crypto Trades highlights that the overall structure of the BTC.D chart remains bullish, with the flagship cryptocurrency continuing to attract substantial capital inflows. What stands out the most as Bitcoin Dominance rises is its steady approach toward a critical resistance level at 71.3%—a zone historically marked as the top of BTC.D during previous cycles. 

Bitcoin

The analyst’s chart shows three failed attempts to break this level in 2019, 2020, and 2021. Each rejection was followed by significant altcoin rallies, indicating that this zone could once again be a significant battleground between Bitcoin and the broader altcoin market. 

If BTC.D revisits this historical resistance level, Daan Crypto Trades suggests that it could serve as a key signal for traders to closely monitor the behavior of altcoins, as any rejection might ignite a strong rotation of capital back into altcoins. 

For now, Bitcoin remains in control, driven by institutional inflows, increased demand, and a generally positive market sentiment. Altcoins, on the other hand, continue to trail behind, struggling due to reduced liquidity and weaker investor interest. Nevertheless, historical price trends indicate that once Bitcoin Dominance reaches the top and begins to plummet, altcoins could be poised for a strong comeback, signaling the possible start of the altcoin season. 

Analyst Says BTC.D Is Reaching A Top

After experiencing months of steady gains, a crypto analyst identified as ‘CT_TAC’ on X has declared that Bitcoin Dominance may be approaching its peak. He revealed that BTC.D is also flashing potential weakness after breaking down from a rising wedge chart pattern and struggling to reclaim lost ground. This breakdown marked a critical shift in momentum, with BTC.D briefly dipping before attempting a recovery. 

Notably, a sustained move lower in Bitcoin Dominance would indicate that capital has finally begun to rotate out of the flagship cryptocurrency and into altcoins—a necessary condition for an altcoin season. With BTC.D still struggling to reclaim former highs, the analyst has noted that next week’s performance will be critical in determining whether it continues to rise or drops to new lows.

Bitcoin

from Bitcoinist.com https://ift.tt/5jrUVKi
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more