Bitcoin dominance is ripping, breaking the 63.96% level and nearing a key area of resistance in the form of the .46% level near 64.45%. This new high has been reached at the same time that Bitcoin had a major price correction in mid-April. The crypto market as a whole is always paying attention to Bitcoin dominance. Its trajectory will have a huge impact on the likelihood of an altcoin season. A decisive monthly close over the next few days will almost certainly set the tone for the wider market structure as we enter May.
Bitcoin's Dominance on the Rise
Bitcoin dominance had just recently retested the 57.68% to 59% area as resistance, which sent dominance into a new surge. Just like that, this surge now risks making the 64%-in-favor region that used to be resistance into support. The ongoing increase in Bitcoin dominance indicates an increasingly healthy position for the top cryptocurrency in the market as a whole.
The current uptrend is actually not a new development. Bitcoin dominance broke out of a multi-year downward channel during 2023 and has been increasing ever since. This breakout is more than a quick bullish moment. It indicates a larger, longer-term shift in market dynamics that will favor Bitcoin.
Currently, Bitcoin dominance is sitting at 63.2%. Its taxi acceptance rate hit 63.6% recently, the highest it’s been in a year over the past 24 hours. The trend of positive gains across all three months showcases Bitcoin’s continued strength and trend-setting capabilities as the original and still most dominant cryptocurrency.
Technical Analysis and Market Structure
This Bitcoin dominance uptrend is reinforced by a very healthy rising ascending trendline. If upheld, this trendline means continued buying pressure and doubles down on the bullish Bitcoin dominance projection. If Bitcoin dominance were to find solid support in the 64% area, it may set the stage for additional advances.
A compelling monthly close above this pivotal level would seal the deal on the resistance-to-support flip. Such a development would increase the odds of a longer-lasting period of Bitcoin dominance where it outperforms altcoins.
Losing its hold above 64% might indicate a near-term reversal is brewing, providing a window for altcoins to catch a break with a rally. These next few days will be critical for figuring out that short-term market structure.
Implications for Altcoins
How Bitcoin dominance plays out in the days ahead will likely decide whether altcoin season has a chance at all. In crypto history, whenever Bitcoin dominance increases, alts usually bleed as money moves into Bitcoin.
If Bitcoin dominance breaks to the upside on this trend, altcoins will be under the gun, failing to catch any momentum. If Bitcoin dominance stabilizes or declines, it could pave the way for altcoins to rally and potentially kickstart an altcoin season.
