Bitcoin Dominance Surpasses 60% Amid Market Turbulence

Bitcoin has recently achieved a significant milestone in the cryptocurrency market, with its dominance surpassing 60%. This level of dominance was last seen in 2021, but the current market conditions are vastly different. In 2021, the crypto market was much smaller, with only 3,000 to 4,000 active projects. However, by 2025, the market has expanded exponentially, with millions of cryptocurrencies active. This growth underscores Bitcoin's increasing influence and market share.

In recent weeks, Bitcoin has shown resilience amidst market turbulence. The cryptocurrency bounced back from a five-month low of around $74,000 to its current trading price of around $85,000. This surge is attributed to positive economic indicators such as the US Consumer Price Index and global liquidity injections. Despite facing rejection at the $86,000 mark, Bitcoin's price has remained stable. In contrast, altcoins like Ethereum, which saw significant gains in 2021, have experienced a decline in relative strength. The ETH/BTC ratio has hit its lowest level since January 2020, indicating a reduction in the altcoin market share and further cementing Bitcoin's dominance.

Experts have varying predictions about the future of Bitcoin's dominance. Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin's dominance could climb as high as 70%. He attributes this potential growth to Bitcoin's increasing appeal as an inflation hedge, driven by quantitative easing and liquidity boosts. Hayes notes that Bitcoin is increasingly seen as a safe store of value. Meanwhile, crypto analyst Rekt Capital suggests that the anticipated altseason might only begin once Bitcoin's dominance touches a predicted near 71%. Historically, altcoins have tended to surge when Bitcoin's market share decreases from this level. Therefore, the current Bitcoin dominance may be setting the stage for altcoins to shine soon.

Bitcoin's growing popularity in the vast cryptocurrency market indicates that it is slowly transforming into a competitor to traditional stores of value like gold. Given this transformation, it is important to analyze Bitcoin's price movements in response to this milestone. As of the latest analysis, Bitcoin traded at $83,750 at the start of the day. The price saw a positive start, ascending to $85,100 in the first hour of trading. However, a correction quickly followed, with the price falling to $84,100 by 2:00 UTC. The price then spiked again, facing rejection at $85,300. The coin became overbought, leading to a downtrend that took Bitcoin to $84,450. The price fluctuated for a few hours before stabilizing and forming a trading range around 7:00 AM UTC. This range lasted until 12:00 UTC, when Bitcoin finally broke out upwards, going to $85,200. The EMAs rapidly interacted on the MACD, as Bitcoin dipped and then spiked quickly to $85,750. An impending reversal came within 15 minutes, with Bitcoin reeling down to $83,800. At 16:30, the signal line overtook the long-term, and Bitcoin slowly ascended to $85,200. A trend reversal followed, and Bitcoin soon dipped to $84,300 for support. A golden cross formed at 00:15 UTC, instigating an uptrend, leading Bitcoin to ascend all morning to test the $85,900 resistance.

The $85,000 mark has been a significant resistance level for Bitcoin. Since the Black Monday crash, Bitcoin has struggled to surpass this mark. The last 24 hours have shown a similar pattern, with Bitcoin struggling to touch the $86,000 mark. As of now, Bitcoin is already testing this resistance. If it fails to form a range to avoid a downtrend, there could be a return to support. However, if the bullish scenario plays out, Bitcoin could be observed closing in on the $87,000 mark within a day or two.