Bitcoin dominance faces resistance at 58%-63%, signaling potential retracements and opportunities for altcoin growth into 2025.
Altcoins gain strength as $BTC.D consolidates, with historical support at 41% offering traders critical pivot zones for market positioning.
Analysts project altcoin rebounds as Bitcoin dominance weakens, driven by cyclical market trends and diverging price action in late 2024.
Bitcoin market dominance ($BTC.D) remains a focal point as it tests key resistance and support levels. Analyst astronomers highlight the continuous changes in dominance and their effects on cryptocurrency markets. A crucial stage for traders was recently marked by the recent peak of Bitcoin dominance, a gauge of the cryptocurrency's entire market share, which was close to 58.41%.
Bitcoin Dominance Peaks Amid Resistance
Bitcoin dominance hovered within the 55%-63% range throughout late 2024. Key resistance levels were identified at the 58%-60% Monthly Breaker Open and the 0.618 Fibonacci retracement zone near 63%. These zones present hurdles, influencing price action. Besides these resistance points, analysts observed a gradual retracement after dominance peaked, hinting at potential consolidation.
The dominance suggests Bitcoin's share may experience fluctuations into 2025, with sharp drops anticipated. Critical support levels include 47%, 41%, and 38.5%. Notably, the 41% range aligns with historical support zones from mid-2021 to early 2023, marking turning points for broader market activity.
Source: astronomers
Altcoins Gain Momentum Against Bitcoin
While Bitcoin’s dominance challenges resistance, altcoins display relative strength. Astronomer highlights substantial rebounds in altcoins, signaling a divergence from previous patterns like March 2024's Bitcoin-dominated trends. Moreover, the ongoing Bitcoin dominance peak contrasts with earlier phases, bolstering altcoins' potential to outperform.
Additionally, traders are capitalizing on this divergence. Shifts in Bitcoin dominance typically encourage altcoin accumulation, particularly during consolidations. As Bitcoin dominance weakens, altcoins are positioned for growth, supported by cyclical market movements and reduced macroeconomic noise.
Analysts predict Bitcoin dominance may face retracements unless it sustains movements above the 63% resistance. These retracements are expected to test lower levels, potentially reinforcing altcoins’ relative strength. Consequently, traders are advised to monitor key pivot zones, including the 55%-63% range and lower supports at 47% and 41%.
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