Bitcoin Dominance Surges 65.37% as Altcoins Lose $110 Billion

Bitcoin’s dominance in the cryptocurrency market has surged to 65.37%, marking a significant shift in capital allocation patterns. This rise has coincided with a substantial loss in the altcoin market, which has shed over $110 billion in value. The dominance chart, spanning from May 2024 to July 2025, illustrates a consistent upward trend within an ascending channel, indicating Bitcoin’s growing influence and the weakening of altcoins.

The price action within this ascending channel reveals repeated bounces at the lower trendline, confirming bullish support. Conversely, rejections near the upper boundary have created visible resistance zones, allowing traders to strategize their positions effectively. Entry points, stop-loss zones, and take-profit levels are clearly defined within these green and red areas, providing a structured approach for market participants.

Meanwhile, the total crypto market cap excluding Bitcoin and Ethereum exhibits a bearish structure. Since late May, the altcoin segment has experienced a sharp decline, dropping from a peak near $950 billion to $760 billion by late June. A descending trendline outlines multiple rejection points, confirming a bearish channel that continues to pressure altcoin valuations. Although there was a brief rebound above $820 billion in early July, technical indicators remain cautious.

The Moving Average Convergence Divergence (MACD) has stayed largely negative, with repeated bearish crossovers indicating prolonged downward momentum. However, recent sessions show the MACD approaching neutral levels, offering some short-term relief. The Relative Strength Index (RSI) reflects this volatility, dipping below 30 during the selloff and indicating extreme oversold conditions. As of now, the RSI has recovered to 58.35, suggesting ongoing consolidation.

Bitcoin’s dominance trading at the channel’s top boundary calls for close observation. Sustained moves beyond this level could trigger breakout scenarios, historically leading to accelerated momentum. Volume spikes during dominance surges indicate significant shifts in market sentiment, keeping altcoin investors on edge until clarity emerges.

The Altcoin Index currently stands at a low 26, indicating weak liquidity for non-Bitcoin tokens. This lack of liquidity explains why Bitcoin continues to dominate the market, with its price hovering above $100,000. The bearish sentiment is further compounded by the Stochastic RSI, which shows a bearish crossover. This indicator typically signals fading buying pressure and a shift toward bearish momentum, adding to the overall bearish outlook for altcoins.

Despite the overall bearish sentiment, there are some pockets of bullish activity. Arbitrum (ARB), for example, has seen a notable gain of over 18%, trading around the $0.36 mark. The asset's daily trading volume has skyrocketed, and the market sentiment of ARB may trigger it to move further upward. However, the current market of the asset is in overbought territory, signaling that a pullback or correction may be imminent. The daily Relative Strength Index (RSI) stays at 75.68, and Arbitrum’s Bull Bear Power (BBP) value of 0.0578 infers a slight bullish dominance in the market. However, the low value hints at its weakness and could shift quickly.

The bearish divergence in Bitcoin's dominance and the weak liquidity in the altcoin market suggest that altcoins may continue to face pressure in the near term. The Stochastic RSI and MACD indicators add to the bearish outlook, with sellers dominating the market. While there are some pockets of bullish activity, such as Arbitrum's recent gains, the overall sentiment remains bearish. Investors should be cautious and monitor the market closely for any signs of a shift in momentum.