Bitcoin’s dominance in the crypto market is showing signs of weakness, with analysts pointing to mounting technical evidence that suggests altcoins could soon take center stage.
Currently hovering near 61.4%, the Bitcoin Dominance Index has been rejected at the 64.35% resistance level, forming a bearish engulfing candle on the weekly chart. This rejection, coupled with the highest trading volume since early 2021, is fueling expectations of a deeper drop.
According to crypto analyst Master Ananda, this pattern closely mirrors the early 2021 setup—when Bitcoin’s dominance cracked and altcoins surged across the board. He sees a decisive break below 58.94% as the key trigger for further downside, potentially opening the path to 57.01% and even 47.44%.
Fibonacci levels at 61.65% and 60.30% are acting as short-term pressure points, with failed retests reinforcing bearish sentiment.
Adding to the outlook, trader Michaël van de Poppe noted on July 28 that a bearish divergence has formed on the dominance chart, signaling waning momentum for BTC against the broader market. The divergence has persisted since June and has now confirmed a breakdown beneath the 52.5% mark—historically a precursor to altcoin strength.
While Bitcoin trades sideways just under $120,000, the dominance charts suggest the altcoin market may be preparing to accelerate. Pullbacks could offer strategic entry points for those eyeing the next phase of rotation.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-dominance-breaks-down-is-an-altcoin-rally-on-the-horizon/