The charts analyze Bitcoin dominance ($BTC.D) over the weekly time frame and show two different perspectives:
---
First Chart Analysis: Parallel Channel
1. Channel Formation: Bitcoin dominance is trading within a well-defined ascending parallel channel, indicating a steady uptrend.
The price is nearing the upper boundary of this channel, suggesting a potential resistance level.
2. Key Resistance Zone: The gray zone around 60–61% represents a critical resistance area. BTC dominance has struggled to break above this region.
3. Breakout or Rejection?:
If BTC dominance successfully breaks and sustains above this resistance, it could signal stronger momentum for Bitcoin.
A rejection here might cause dominance to retrace toward the midline or lower boundary of the channel.
---
Second Chart Analysis: Rising Wedge
1. Rising Wedge Pattern: The dominance is forming a rising wedge, which typically is a bearish reversal pattern.
The apex of the wedge aligns near the key resistance zone (60–64%).
2. Potential Breakdown:
If BTC dominance breaks below the lower boundary of the wedge, it may indicate a decline in dominance, possibly retesting lower levels around 55–56%.
However, a breakout above the wedge would invalidate this bearish bias, leading to further Bitcoin strength.
---
Impact on Altcoins:
1. If BTC Dominance Increases:
Higher BTC dominance often leads to weaker performance in altcoins. Funds flow into Bitcoin as the market consolidates around it.
Altcoins could experience reduced liquidity and potential sell-offs.
2. If BTC Dominance Decreases:
A drop in BTC dominance could spark an altcoin rally, commonly referred to as "alt season."
This scenario suggests increased capital rotation into altcoins, driving their prices upward.
---
Conclusion:
Monitor the 60–64% zone closely as it will determine the next major trend.
A breakout above 61% could suppress altcoins further.
A rejection or breakdown would likely trigger renewed strength in altcoins.
