According to U.Today, Bitcoin's market dominance has surged to 60%, marking a significant shift in market dynamics and reversing trends that have influenced the industry for years. This resurgence comes after a prolonged altcoin season, during which investors favoured altcoins over Bitcoin. Despite the increase in Bitcoin's price in USD terms, altcoins have been losing value against Bitcoin pairs, primarily due to Bitcoin's own upward movement.
Bitcoin's journey to this 60% dominance level was not without challenges. The recent surge in Bitcoin's price allowed it to outperform numerous smaller coins, weakening the stronghold of altcoins. Although altcoin prices did rise, this was largely driven by Bitcoin's gains. Since March, many altcoins have struggled to maintain their momentum and have been declining in comparison to Bitcoin.
Chart analysis indicates that Bitcoin recently reversed from the $70,000 mark, failing to sustain its position above this critical level. This decline highlights the selling pressure Bitcoin faces at higher levels but does not necessarily indicate a breakdown of its overall bullish trend. Key support levels at $67,000, $64,000, and $62,000 are crucial to watch as they may act as stabilizing points if Bitcoin continues to retract. To maintain its bullish momentum and potentially advance higher, Bitcoin must recover and hold above $70,000.
Bitcoin's current dominance significantly impacts the market. As long as Bitcoin remains strong, altcoins are likely to continue struggling against their Bitcoin pairs. This dominance cycle suggests that Bitcoin is concentrating capital, making riskier altcoin investments less attractive. The trend indicates that Bitcoin will continue to outperform altcoins until it establishes a stable base near its recent highs, which could provide altcoins an opportunity to recover against Bitcoin pairs.
