Technical Analysis

BTC dominance near 60%: Is a major altcoin rally coming soon?

Published: Sep 26, 2024

Current state: BTC dominance continues to remain inside the rising wedge we've been tracking for several months. Price action has been squeezing within the wedge, with BTC dominance approaching the upper resistance zone near 60%. The market is reaching a critical moment where BTC dominance is likely to make a decisive move.

Key observations

Resistance: BTC dominance is nearing the top of the wedge, with the 60% resistance zone serving as a major level. Once dominance reaches this point, we could see a sharp rejection, which would likely lead to a significant inflow of capital into altcoins.
Potential scenario: While BTC dominance may spike one last time toward the upper resistance, the overall structure of the wedge suggests an impending breakdown. When this occurs, we expect altcoins, including SOL and ETH, to begin outperforming BTC as money rotates out of Bitcoin and into the altcoin market.
Market dynamics: This final stretch of BTC dominance within the wedge signals that the market is on the verge of a shift. A breakdown in BTC dominance would likely coincide with the start of a broader altcoin rally, marking the next phase of the bull cycle.

Bitcoin dominance percentage with trendlines, key support and resistance levels, and potential breakout patterns over several years.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Conclusion

BTC dominance is at a critical point as it nears the apex of its rising wedge. A spike towards the 60% resistance level is likely, but a breakdown is expected to follow. This will likely mark the beginning of a capital rotation into altcoins, signalling the start of the next major altcoin rally.