Bitcoin’s market dominance recently reached 60%, indicating a major shift in market dynamics and a reversal of trends that have shaped the industry for years. Bitcoin once again took the lead after a protracted altcoin season during which investors were more bullish on ALT than Bitcoin.
This comes at a time when altcoins continue to lose value in their pairings with BTC, although the price of Bitcoin in dollar terms has risen mainly due to its own upward movement. Reaching this 60 percent dominance level was not easy because Bitcoin faced several obstacles. The altcoin stronghold has begun to weaken as Bitcoin’s recent rise has allowed it to outperform many smaller coins. While the price of altcoins did rise, this was largely due to the rise of Bitcoin.
As a result, many altcoins have failed to maintain their momentum and have been declining relative to BTC since March when Bitcoin set new highs. According to chart analysis, Bitcoin price recently pulled back from the $70,000 mark, failing to maintain its position above this critical level. This decline illustrates the selling pressure Bitcoin is experiencing at higher levels, but it does not necessarily herald a break in the cryptocurrency’s overall bullish trend.
The key support levels of $67,000, $64,000 and $62,000 are worth keeping an eye on as they could act as stabilizing points for Bitcoin if it continues to decline. To maintain the bullish momentum and possibly move higher, Bitcoin needs to recover and hold above $70,000.
The market is largely influenced by the current dominance of Bitcoin. Altcoins will likely continue to struggle with their BTC pairs as long as Bitcoin is strong. Because of this cycle of dominance, Bitcoin appears to be concentrating capital, making riskier bets on altcoins less attractive. The dominance trend suggests that Bitcoin will continue to dominate the performance of altcoins until it is able to establish a stable base close to its recent highs, which could give altcoins a chance to regain their pairings with BTC.
