Bitcoin Dominance Surges: Is Altseason Officially on Hold?

• Bitcoin dominance surges, delaying altseason as investors favor BTC over altcoins. Resistance at 71.04% could trigger a shift.
• A breakout above key trendlines keeps BTC’s dominance strong. If support at 57.68% holds, further gains remain likely.
• Historical trends suggest Bitcoin’s dominance may rise before hitting resistance, echoing past cycles like 2019 and 2020.

Bitcoin dominance remains in a strong uptrend, maintaining its macro direction. Currently, BTC dominance sits at 61.20%, reflecting steady market control. A recent breakout above a key trendline led to a surge, though a minor pullback followed. Historically, such pullbacks provide temporary windows for altcoin rallies . However, dominance is expected to climb until it faces resistance near 71.04%.

Bitcoin Dominance Strengthens Amid Market Shifts

Rekt Capital, a well-known crypto analyst, highlighted Bitcoin dominance’s steady increase. The trendline remains intact, acting as a dynamic support. If BTC dominance holds above 57.68%, further gains seem likely. A historical comparison shows similar price action in 2019. After reclaiming a key level, Bitcoin dominance surged, mirroring current movements.

Source: Rekt Capital

A descending channel between 2021 and 2023 led to a strong breakout, fueling a long-term rally. Bitcoin dominance moved past multiple resistance levels and consolidated above the trendline. This pattern suggests continued upside movement if support holds. Historical data also shows that dominance peaks near 71% often trigger major altcoin seasons.

Key Resistance and Market Implications

Bitcoin dominance faces crucial resistance at 71.04%, a historical level that previously marked cycle tops. If it rejects this level, an altcoin rally may follow. However, if BTC dominance continues climbing, capital will likely remain in Bitcoin, delaying a broader altcoin breakout.

The correlation between Bitcoin dominance and market cycles remains evident. Rising dominance signals investors favoring Bitcoin over altcoins. A declining dominance, in contrast, suggests capital flowing into altcoins. The market structure remains bullish as long as dominance stays above 57.68%.

Moreover, historical time periods like May 2020 and April 2024 align with key Bitcoin dominance movements. These shifts followed major resistance breaks, leading to continued rallies. The current market action follows a similar path, suggesting dominance could push higher before facing strong resistance.