- Bitcoin dominance nears 62%, signaling altcoin weakness amid market-wide uncertainty.
- Key support at 60.63% may determine Bitcoin dominance’s next breakout or decline.
- Ethereum struggles below $2,000 as BTC dominance pressures the altcoin market.
Bitcoin dominance has been on an upward path, signaling a shift in the broader crypto market.
According to Benjamin Cowen, a well-regarded market analyst, Bitcoin dominance has broken through 60%, achieving a significant milestone in the market cycle.
Analyst’s Market Outlook
Cowen’s analysis projects a scenario where Bitcoin firmly establishes its dominance, the market experiences a selloff, Ethereum encounters headwinds, and the Federal Reserve eventually concludes its quantitative tightening (QT).
This sequence could set the stage for a market rally before macroeconomic conditions deteriorate later in the year, potentially leading to a recession in 2026, aligning with historical midterm-year bear markets.
Analyzing Bitcoin’s Dominance Trajectory
Bitcoin’s market dominance has maintained a consistent uptrend since mid-2024. It has consistently formed higher highs and higher lows, validating bullish momentum.
Following a brief pullback in December 2024, BTC dominance swiftly recovered, overcoming key moving averages and finding stability near 62%.
Decoding Key Dominance Levels
Currently, Bitcoin dominance is in a phase of consolidation, hinting at a potential breakout or correction. The 50-day simple moving average (SMA) at 60.63% is currently acting as short-term support, while the 100-day SMA at 59.05% provides a medium-term cushion.
Related: A 60% Bitcoin Dominance Could Shake Up the Altcoins Market – Analyst
Meanwhile, the 200-day SMA at 58.80% functions as a long-term support level, a critical demand zone for traders monitoring for entry points.
Resistance Zones and Market Outlooks
Resistance remains formidable near the 62% level, where Bitcoin has encountered rejection several times.
A breakout beyond this threshold could see dominance rise to 63%-64%. However, if Bitcoin fails to hold its support at 60.63%, dominance could decline toward 59.05% or lower.
Bitcoin Price Action and Potential Scenarios Unfold
At the current price of $78,726.28, Bitcoin has fallen by 4.60% in the last 24 hours and 12.71% over the past week. The market’s reaction to these levels will determine its next course.
A drop below $73,000 could push Bitcoin toward $70,000 or lower, igniting further market-wide corrections. However, should Bitcoin stabilize and bounce from this level, it could retest resistance at $78,700, potentially spearheading the market’s recovery.
Ethereum and Altcoin Market Under Pressure
Ethereum is currently trading at $1,942.54, down 4.78% in the past 24 hours. With Bitcoin dominance gaining strength, Ethereum and other altcoins face continued selling pressure.
Related: Altcoin Season Watch: Bitcoin Dominance Holds, But Breakout Signals Flash
If BTC remains dominant, altcoins may experience sharper losses. On the other hand, should BTC dominance retreat, altcoins could regain strength, opening up new opportunities for investors.
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