CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino

crypto.news 2025-05-20 18:23:07

Bitcoin dominance hits key resistance zone: is alt-season around the corner?

Bitcoin dominance is testing a historically significant resistance level within a long-standing bullish channel. A rejection at this level could signal the early stages of a rotation into altcoins — and potentially ignite a mini-alt season. Since November 2022, Bitcoin dominance has remained locked in an upward-sloping channel, reflecting growing market preference for BTC during periods of volatility and uncertainty. However, the chart is now showing signs of potential weakness as dominance approaches a resistance level that previously triggered a sharp altcoin rally. With Bitcoin trending toward all-time highs, a consolidation in price could create the perfect storm for a reversal in dominance, and a shift in capital into the altcoin market. Key technical points Upward Channel Structure: Bitcoin dominance has remained within a rising channel for over 18 months. Major Resistance Zone: Current levels mirror a historical rejection point that previously triggered alt-coin outperformance. Potential Reversal Catalyst: A BTC consolidation above ATH may precede a pullback in dominance, increasing alt-coin rotation. BTC.D Chart, Source: TradingView The Bitcoin dominance chart has respected the boundaries of an upsloping channel since late 2022. This structure has consistently signaled bullish control, with each test of support followed by higher highs. Currently, dominance is testing the upper bound of this channel, a resistance zone that has historically preceded notable altcoin rallies. This same region was last rejected during a previous run-up, which led to a temporary altcoin breakout and a drop in dominance. With Bitcoin now eyeing either a breakout or consolidation above its all-time high, market participants may begin reallocating capital into altcoins in search of higher returns. If dominance is rejected here again, we may see a repeat of this rotation, potentially driving a short-term altcoin rally. You might also like: XLM Price up 1.17% from key support: bullish structure points to $0.35 rally A key factor to watch is the integrity of the channel support. If dominance retraces toward the lower boundary of the channel, and especially if that level breaks, it could open the door for a more pronounced and sustained alt season. That said, such a scenario would likely require fundamental catalysts such as a major BTC correction or a strong return of risk-on sentiment to the broader market. What to expect in the coming price action A short-term rejection in dominance near this key resistance could spark a mini-alt season, particularly if Bitcoin enters a period of consolidation. If dominance loses its multi-year channel structure, it may pave the way for a broader altcoin surge, though such a move would likely depend on external catalysts and Bitcoin’s trend behavior in the weeks ahead. Read more: Why Trump’s ‘big, beautiful’ bill is bullish for Bitcoin and altcoins

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta