Key Insights:
- Bitcoin Dominance flips key supports into resistance, signaling growing strength in the altcoin market.
- RSI divergence on BTC hints at short-term bounce, pending confirmation from a strong daily close.
- Weekly CME gap fully filled, removing downside pressure and shifting focus to support near 57.68%.
Bitcoin Dominance has broken below its long-term uptrend support, marking a shift in market structure. This trendline had held since early 2023 and supported Bitcoin’s position over altcoins. With this level now lost, market watchers are monitoring a new downtrend.
Former support zones around 60% and 64% have now become resistant. Recent attempts to reclaim these levels were rejected. This change shows that Bitcoin is no longer holding its dominance strength as it did earlier in the year.
Altseason Trigger Level Holding
The 57.68% level is now the key support. Bitcoin Dominance is hovering just above this zone.
According to market analyst Rekt Capital,
“losing the green 57.7% level as support is what would kickstart a major Altseason.”
This level has acted as a floor in the past and is now being tested again. If it breaks, capital may start to rotate more heavily into altcoins. The market is watching for a daily or weekly close below this zone to confirm further downside.
Bullish Signal Forms on Bitcoin Price Chart
On the daily chart, Bitcoin is showing early signs of a possible trend shift. Price has made a lower low, but the Relative Strength Index (RSI) is moving higher. This mismatch between price and momentum is often tracked as a bullish divergence.
Rekt Capital noted,
“price needs to Daily Close just like this to crystallise it.”
The current setup is still developing and requires a daily close to confirm. Until then, momentum remains mixed, but this pattern is being closely followed.
CME Gap Fully Filled
Bitcoin has now completed the full fill of its CME Futures gap between $109,680 and $111,310. This gap had formed during a weekend in September. Bitcoin has now revisited and traded through the entire range.
Gap fills are common in the Bitcoin market. With this one now resolved, price may have less downside pressure in the short term. Traders are now focusing on whether support holds near current levels.
Bitcoin is trading at $110,622 today. It is down 0.3% over the last 24 hours and 8.9% over the past week. Trading volume is at $70.13 billion. Market attention is turning to whether the 57.7% dominance level will hold—or open the door for altcoin growth.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/btc-dominance-breaks-down/