Key Insights:
- Bitcoin breaks major trend support, now under 59% dominance, favoring potential altcoin strength.
- BTC’s parabolic curve fails near key Fib levels, pulling price sharply below $90,000 support.
- Daily RSI hits lowest level since 2022 collapse, setting up possible bounce or trend shift.
Bitcoin’s market dominance has dropped below 59%, marking its second break from an ascending support line since July. According to the latest chart data, the initial breakdown failed to recover, and the most recent move confirms further weakness. Bitcoin’s dominance now stands at 58.8%, suggesting traders may be shifting focus to altcoins.
Both breakdowns occurred after periods of failed upward continuation. These moves show that Bitcoin is losing its lead in market share, giving altcoins more space to grow.
A tweet from Bitcoinsensus said,
“Second breakdown confirms weakening BTC hold,”
Moreover, pointing to a broader rotation across the market.
Price Drops Below $90,000 After Rejection
Bitcoin was trading below $90,000 after falling from key Fibonacci levels. The chart shows failed attempts to hold above $102,030 and $122,446—levels based on the 1.618 and 2.0 Fib extensions. The drop came after rejection near these areas, which coincided with the break of a parabolic trendline that had supported the rally since 2022.
This curved support line had defined the broader uptrend over the past year. Losing that structure could shift momentum. If price does not recover above the curve soon, Bitcoin may face additional selling pressure as traders reassess support levels.
RSI Drops to Levels Last Seen in 2022
Bitcoin’s daily RSI has now dropped to 21.60, a level not seen since the post-FTX bottom in late 2022. This suggests that the market is in an oversold condition. According to a chart from DaanCrypto, the last time RSI was this low, it marked the end of a prolonged downtrend and led to a multi-month recovery.
The current RSI reading below 30 shows that recent selling pressure has pushed sentiment to extreme lows. While this does not confirm a reversal, it places BTC in a zone where traders typically begin to monitor for bounce setups.
Altcoin Focus Increases as Dominance Drops
With Bitcoin dominance breaking key levels and RSI showing historic oversold readings, attention may shift toward altcoins. A falling BTC dominance often signals capital rotation, which can drive stronger performance in the altcoin market.
If the current trend continues, altcoins could gain more traction. Market watchers are closely following the 59% level as a signal of where attention may go next.
| 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-slips-below-59/