Despite last week’s crash, Bitcoin Dominance (BTC.D) remains significantly elevated, reinforcing its strong position on the charts. This sustained rise in dominance sends a clear message that Bitcoin (BTC) still holds a considerable amount of investor attention, leaving the rest of the market, particularly altcoins, struggling to keep pace.
Bitcoin Dominance Powers Ahead, Eyes Major Resistance
On May 17, crypto market expert ‘Daan Crypto Trades,’ took to X (formerly Twitter) to share insights on Bitcoin Dominance, highlighting how its continued rise could impact alternative cryptocurrencies. The analyst shared a chart showing that BTC.D has been steadily climbing for almost three years, since mid-2022, after bottoming out near the 39% level.
Related Reading: Crypto Analyst Says “Altseason Is Dawning” As Bitcoin Dominance Reaches HTF Resistance, What To Expect
Since then, Bitcoin has slowly reclaimed its market share, outperforming altcoins in almost all categories, including price performance and market capitalization. Based on the chart, this momentum has led BTC.D to climb past key resistance levels at 48%, 52%, and, more recently, above 60%.
Despite a brief retracement this past week, Daan Crypto Trades highlights that the overall structure of the BTC.D chart remains bullish, with the flagship cryptocurrency continuing to attract substantial capital inflows. What stands out the most as Bitcoin Dominance rises is its steady approach toward a critical resistance level at 71.3%—a zone historically marked as the top of BTC.D during previous cycles.
The analyst’s chart shows three failed attempts to break this level in 2019, 2020, and 2021. Each rejection was followed by significant altcoin rallies, indicating that this zone could once again be a significant battleground between Bitcoin and the broader altcoin market.
If BTC.D revisits this historical resistance level, Daan Crypto Trades suggests that it could serve as a key signal for traders to closely monitor the behavior of altcoins, as any rejection might ignite a strong rotation of capital back into altcoins.
For now, Bitcoin remains in control, driven by institutional inflows, increased demand, and a generally positive market sentiment. Altcoins, on the other hand, continue to trail behind, struggling due to reduced liquidity and weaker investor interest. Nevertheless, historical price trends indicate that once Bitcoin Dominance reaches the top and begins to plummet, altcoins could be poised for a strong comeback, signaling the possible start of the altcoin season.
Analyst Says BTC.D Is Reaching A Top
After experiencing months of steady gains, a crypto analyst identified as ‘CT_TAC’ on X has declared that Bitcoin Dominance may be approaching its peak. He revealed that BTC.D is also flashing potential weakness after breaking down from a rising wedge chart pattern and struggling to reclaim lost ground. This breakdown marked a critical shift in momentum, with BTC.D briefly dipping before attempting a recovery.
Notably, a sustained move lower in Bitcoin Dominance would indicate that capital has finally begun to rotate out of the flagship cryptocurrency and into altcoins—a necessary condition for an altcoin season. With BTC.D still struggling to reclaim former highs, the analyst has noted that next week’s performance will be critical in determining whether it continues to rise or drops to new lows.
