Major cryptocurrencies trade sideways as Bitcoin dominance stagnates, potentially signaling increased altcoin rotation

Major cryptocurrencies are trading sideways amid stagnating Bitcoin dominance, potentially signaling increased capital rotation into altcoins.

The major cryptocurrencies are trading in a sideways motion as Bitcoin’s dominance continues to stall, which might indicate that more capital is rotating into altcoins.

Here’s a look at what happened Thursday morning:

What Happened: Top cryptocurrency Bitcoin (CRYPTO: BTC) rose by 0.44% during the 24-hour period to reach $68,000 by Thursday morning.

It dropped to an intrasession low of $67,559, a key level that could trigger a deeper decline. The lower level also coincides with a strong Fib support and demand zone, which helped to stall the bear trend.

According to Stockmoney Lizards, Bitcoin has recovered remarkably from a crucial support zone, solidifying the bullish technical structure.

“The conservative estimate for this cycle’s peak is $150,000-$160,000 but we can set our sights a little higher with a more probable range of $200,000-$250,000.”

CrediBULL Crypto stated that BTC experienced a bounce at a local demand zone and is currently consolidating, a pattern that usually precedes continuation moves. The main factor to watch is whether Bitcoin manages to maintain a higher low to continue its upward trajectory.

“As the market continues to digest the recent price action, it will be interesting to see how this story unfolds and whether Bitcoin can sustain its bullish momentum to reach even greater heights.”

On the other hand, van de Poppe observed a bearish divergence in Bitcoin dominance, which might indicate that the ongoing reversal still has potential to develop.

“This feels like it might get interesting. Bitcoin price action is heating up as we approach the crucial $67,500 level, which could determine the fate of a potential 11% rally to $116,652. A breach above this zone could propel Bitcoin towards the Fib-implied $165,000 price bracket, setting the stage for a substantial price increase.”

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Deutscher noted that the amount of Bitcoin held by exchanges has fallen to a seven-year low of 14%.

“As demand increases and supply tightens, the stage is set for significant bullish pressure and potentially rapid price increases.”

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