BTC dominance has re-emerged in a chart pattern mirroring its 2021 trajectory, fueling speculation about a potential altcoin breakout. The current dominance level, moving sideways near 61.6%, replicates the structure observed during the early 2021 bull run, when dominance peaked, dropped sharply, and entered an 8-week consolidation phase before altcoins surged. Analysts suggest a similar capital rotation into altcoins could materialize if key support levels hold.
The 60–62% range has become critical for BTC dominance, acting as a pivotal threshold for market sentiment. A break below this zone could signal weakening Bitcoin demand and rising altcoin appeal. Historical parallels show that in 2021, a decline in dominance from peak levels to below 60% preceded a significant shift in capital allocation toward alternative cryptocurrencies. Current market watchers emphasize the importance of this support area, noting that a sustained drop could drive dominance toward 50% or even 45%, reinforcing altcoin strength.
Bitcoin’s recent price movement has added momentum to this narrative. Over the past 24 hours, BTC fell 2.66% to $115,596, marking a 3.36% weekly decline. The combination of falling prices and dominance consolidation has heightened expectations for an altcoin rally, as traders seek higher returns in smaller, more volatile assets. While the timing of such a shift remains uncertain, the historical symmetry between 2021 and 2023 patterns suggests a similar capital reallocation scenario may be unfolding.
The market is now in a watchful phase, with traders closely monitoring whether BTC dominance will breach its 60–62% support range. If this level fails, it could trigger a chain reaction, diverting liquidity from Bitcoin to altcoins. However, the prolonged sideways movement indicates a period of consolidation, which is often a precursor to major market shifts. Investors are advised to remain cautious but attentive, as the interplay between dominance levels and Bitcoin’s price will likely dictate the next chapter in crypto market dynamics.
Source: [1] [BTC Dominance Repeats 2021 Pattern, Altcoin Rally May Follow After Sideways Action] [https://coinmarketcap.com/community/articles/688429b58db2ba68f65654e9/]
