Analysts warn of significant growth in Bitcoin dominance, which has reached 65.2% and may approach a key resistance level at 71%. This could trigger a new altcoin cycle.
BTC Dominance Approaches Multi-Year Resistance Zone
According to an analysis by DaanCrypto on X, Bitcoin dominance (BTC.D) is on its way to levels not seen since 2019. The analyst points to strong interest from institutional investors, such as Michael Saylor, and inflows into ETFs propelling BTC.D higher. DaanCrypto stated, 'I would not have expected this ratio to get back to 65%+ if you asked me 2–3 years ago, but here we are.'
Market Structure Could Signal Shift Toward Altcoins
The market shows signs of BTC.D approaching a significant resistance zone between 71.38% and 73.06%. Analysts, including Ijaz Awan and Gert van Lagen, highlight the formation of a rising wedge pattern, with the Relative Strength Index (RSI) showing bearish divergence that previously preceded declines in BTC.D.
Institutional Demand Drives BTC.D
Rekt Capital, a well-known crypto analyst, noted that the closer BTC.D gets to the 71% mark, the higher the chance of a major collapse. The last time BTC.D approached this level, it marked the start of a market-wide shift into altcoins. Meanwhile, although Bitcoin remains dominant, retail traders are cautious. Should BTC.D reverse at this key resistance, it could set the stage for a new altcoin cycle.
The rise of Bitcoin dominance and its approach to key resistance levels create conditions for a potential new altcoin cycle. Analysts continue to monitor the market for further trends.
