Bitcoin’s dominance in the crypto market is showing signs of weakness, with analysts pointing to mounting technical evidence that suggests altcoins could soon take center stage.
Currently hovering near 61.4%, the Bitcoin Dominance Index has been rejected at the 64.35% resistance level, forming a bearish engulfing candle on the weekly chart. This rejection, coupled with the highest trading volume since early 2021, is fueling expectations of a deeper drop.
According to crypto analyst Master Ananda, this pattern closely mirrors the early 2021 setup — when Bitcoin’s dominance cracked and altcoins surged across the board. He sees a decisive break below 58.94% as the key trigger for further downside, potentially opening the path to 57.01% and even 47.44%.
Fibonacci levels at 61.65% and 60.30% are acting as short-term pressure points, with failed retests reinforcing bearish sentiment.
Adding to the outlook, trader Michaël van de Poppe noted on July 28 that a bearish divergence has formed on the dominance chart, signaling waning momentum for BTC against the broader market. The divergence has persisted since June and has now confirmed a breakdown beneath the 52.5% mark — historically a precursor to altcoin strength.
While Bitcoin trades sideways just under $120,000, the dominance charts suggest the altcoin market may be preparing to accelerate. Pullbacks could offer strategic entry points for those eyeing the next phase of rotation.
