Bitcoin dominance tests key resistance at 64%, failing which could boost altcoins' momentum

RSI remains above fear levels, signaling of a healthy correction.

The crypto market could be heading toward the pivotal phase of the bullish cycle: “The Altseason”. Despite the short-term volatility, key indicators justify that the market structure remains bullish. A shift in Bitcoin dominance and RSI behaviour could signal the onset of a strong altcoin rally. In this analysis, we explore market movements, key technical levels, and what you, as an investor/trader, could expect next!

A Breakout From Here Could Extend Bitcoin’s Strength Further

The analysis by Front Runners mentions that BTC.D is currently testing the 64% resistance zone, and a breakout from here could extend Bitcoin’s strength at the cost of altcoin performance.

“If BTC.D fails to break out of the 64% barrier and the total market cap manages to form a base close to support, then we expect to see outperformance in altcoins.

This shift could signal the start of an altcoin season as capital flows out of Bitcoin and into altcoins, leading to a surge in their prices relative to BTC.”

If BTC dominance fails to break above the 64% barrier and the total market cap forms a base nearer to support, altcoins are expected to outperform.

This shift has historically led to the start of an altseason as capital flows out of Bitcoin and into altcoins, leading to a surge in their prices relative to BTC.

A Temporary Dip Or Is It A Collapse?

The total market cap of the crypto industry has fallen further to $3.32T, but it has not yet broken the key support at $3.24T. According to Mayo Insights, this indicates a temporary dip, and we’re not seeing signs of a collapse.

The RSI has also reset to below 60 from overbought ranges seen above 80, which is typical in bullish consolidations rather than bearish reversals.

What About Indicators?

The proponent highlights that RSI holding above 40 in a bull market signals that fear isn’t yet dominating. Moreover, the support levels between $3.0T and $3.11T align with the 50- and 100-day EMAs, offering an ideal accumulation area. A bounce from here would affirm the ongoing bullish momentum and likely bring altcoins into the spotlight.

To know what Ethereum could do next, read our Ethereum (ETH) Price Prediction 2025, 2026-2030!