- Bitcoin holds above support, but dominance nears a strong resistance zone.
- Altcoins closed a green monthly candle, showing early signs of strength.
- Ethereum testing key levels near 200-day average for breakout.
Bitcoin’s price has been rising and recently made an attempt to break above $105,000. However, it is now trading just below $104,000, still holding strong above key support levels.
Bitcoin Dominance Reaches Key Resistance, Pressures Altcoin Performance
Meanwhile, Bitcoin dominance has also increased and is now hitting a major resistance zone between 60.30% and 65.20%. This range has acted as a barrier in the past. Many analysts had hoped Bitcoin would slow down to give altcoins a chance to rally, but that hasn’t happened yet.
With about 20 days left in the month, there’s a chance Bitcoin’s dominance could rise even higher. This is important for altcoins because when Bitcoin dominance increases, altcoins usually struggle to keep up. A possible warning sign is emerging too — momentum indicators like the Stochastic RSI are showing a divergence.
Altcoins Show Underlying Strength Despite Market Fear
However, according to Crypto Capital Venture, altcoins are showing some signs of strength. Despite weeks of market fear and sell-offs, the monthly chart actually closed in the green for altcoins, a sign of resilience.
Similar patterns happened during tough times in 2015, 2018, and during the COVID-19 market crash in 2020 — all of which were followed by strong rebounds. While it’s too early to confirm a full bull run, improving global liquidity and possible changes in U.S. monetary policy are positive signals for the market.
Ethereum Price Tests Crucial Technical Support
The second-largest cryptocurrency is testing the lower boundary of a long-term triangle pattern while sitting close to its 200-day moving average around $2,700. If Ethereum manages to break above this level and move back into its previous range, it could open the door for a major rally, with some long-term predictions aiming for $10,000 in the next bull run.
Ethereum’s price action is often seen as a leading indicator for the altcoin market. The analyst said that red days and short pullbacks are normal, even in strong uptrends.
Cardano Price Analysis:
Cardano is another altcoin flashing bullish signals. ADA has re-entered a technical zone called the “bull market doors,” a level that shows growing upward momentum. Even during recent market fear, Cardano managed to form a higher low, a positive sign of strength.
Related: Ethereum’s 30.24% Surge in May: Why ETH Holders Are Set for Big Rewards
Key price levels to watch for ADA include $0.71 and $0.80, along with its 20-week moving average. If it holds these levels, Cardano could continue its climb toward $1.25 or even higher.
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