Bitcoin Dominance Rises Above 65%, Showing a Big Change in the Crypto Market

Bitcoin's dominance has risen above 65%, showing a big change in the crypto market. Bitcoin's dominance is getting close to 71%, a key level it has struggled to reach.

Bitcoin’s dominance has risen above 65%, showing a big change in the crypto market.

This level of Bitcoin dominance is closely correlated with an upcoming critical resistance zone, according to trader Rekt Capital.

Specifically, Bitcoin’s dominance is getting closer to 71%, a key level it has struggled to reach in past cycles.

Meanwhile, Ethereum’s share has dropped to 7.5%, down from more than 22% in 2022.

If this trend continues, it could be setting up the stage for another period of altcoin strength, especially if 71% acts as resistance and triggers a reversal.

Bitcoin’s dominance has been steadily increasing in recent months as investors appear to be more focused on the world’s leading cryptocurrency than other cryptocurrencies.

A recent chart shared by trader Rekt Capital shows how Bitcoin’s dominance is now approaching a critical resistance zone near 71%—a level it has struggled to break in past cycles.

Bitcoin dominance is now approaching 71% after struggling to break through the zone in past cycles. Source: Rekt Capital

“The closer Bitcoin Dominance gets to 71%, the higher the chance of a major collapse, which would likely benefit Altcoin valuations,” the trader said.

And 71% is only ~6% away.

Bitcoin is now at 65.38% and rising. If this trend continues, it could be setting up the stage for another period of altcoin strength, especially if 71% acts as resistance and triggers a reversal.

At the same time, Bitcoin’s price has jumped to $97,000, up 30% from its lowest point this year. This strong price performance is part of why investors are choosing BTC over other coins.

On the other hand, altcoins are losing momentum. Ethereum, the second-largest cryptocurrency, has seen its market share shrink to just 7.5%. That’s a big drop from its peak of over 22% back in 2022.

Even though Bitcoin is rallying, Ethereum isn’t following the same path. In fact, Ethereum’s value compared to Bitcoin is now nearing record lows.

However, if Bitcoin dominance continues to rise, it may spell trouble for altcoins, which could lag further. But if that 71% level holds strong and triggers another reversal, it could be the start of an “altcoin season,” a period when smaller coins gain strength while Bitcoin cools off.

Currently, the Altcoin Season Index stands at 29, suggesting that the season still has some time to kick in. For the season to fully begin, at least 50 out of 75 altcoins need to start outperforming Bitcoin.