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In spite of the ongoing adjustment from its latest peak, Bitcoin’s supremacy over the remaining market has maintained stability in recent days. Importantly, Bitcoin’s superiority in the crypto market has steadily climbed in recent days, recently surpassing a notable threshold of 64% and placing strain on altcoins across the spectrum.
Although Bitcoin itself has recently dropped below the $105,000 support level within the last day, the altcoin market experienced declines throughout the previous week. However, this phase of disparity between Bitcoin and altcoins might not persist much longer, particularly as technical analysis implies the dominance hitting 64% could be a pivotal moment.
Bitcoin Dominance Reaches Resistance: Are We Approaching Exhaustion?
Crypto trader Astronomer shared an assessment on X, emphasizing the 64% area as an essential turning point for BTC.D. His chart, illustrating a potential trajectory for Bitcoin dominance, indicates that the metric has now entered a broad resistance zone between 64.00% and 64.40%. This is significant as this level has previously rejected upward attempts throughout the past month.
Even with Bitcoin being the sole cryptocurrency to establish a new all-time high recently, the Bitcoin dominance has struggled to break past 64% in May, indicating a potential exhaustion of the trend. Notably, after bouncing just above 63.5% on May 28, Bitcoin’s dominance printed a lower peak. The current price actions reflect those earlier movements, lacking the bullish vigor needed to push higher.
If the anticipated path in the chart below materializes, the dominance could oscillate slightly before commencing a downturn that takes it into the lower 63% region and beyond. The forecast on the chart indicates the decline could intensify in early June, potentially allowing altcoins to flourish.
Impending Altcoin Momentum Amid Diminishing Bitcoin Dominance?
The outlook presented in the chart suggests that the Bitcoin dominance surge is nearing fatigue. Despite recent downturns across numerous altcoins, the structural projection hints at an imminent transition and a potential drop in Bitcoin dominance to 63.45%.
From this point forward, the subsequent action will hinge on how Bitcoin adapts at this level. As it begins to retract, this reduction in Bitcoin dominance will likely align with a rise in the price of prominent altcoins, especially among high market-cap altcoins like Ethereum, Solana, and Dogecoin. Consequently, this moment of peak could signify the early phases of a broader altcoin season.
At the time of writing, data from CoinMarketCap indicates that Bitcoin’s dominance currently stands at 63.5%, just above the critical 63.45% mark. A breach of Bitcoin’s dominance at this stage could trigger an altcoin season. Conversely, Ethereum has recorded a 2.01% increase in its dominance over the past 24 hours, totaling 9.4% at the time of this writing. Nonetheless, the prospect of a near altcoin season might deteriorate if Bitcoin dominance manages to achieve a monthly closure above 64%.
Featured image from Getty Images, chart from Tradingview.com
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