Bitcoin Dominance Tests 65.64% Resistance Zone Amid Altcoin Rally Potential

Bitcoin dominance is currently at approximately 65.64%, testing a major resistance zone between 64.3% and 68%. This level has historically marked the end of Bitcoin’s outperformance phase and the beginning of significant capital rotation into alternative cryptocurrencies.

Crypto analyst Patel highlighted that this resistance coincides with a bearish order block and fair value gap formation on the bi-weekly chart. The technical pattern shows Bitcoin dominance trapped within a symmetrical wedge that has governed price action since 2018. A rejection at this level could potentially lead to a 36% drop in dominance, targeting the 42-45% range where altcoins historically began major rallies.

The current technical setup aligns with the established four-year crypto cycle that has reliably predicted major market phases. Previous altseasons in 2017 and 2021 began when Bitcoin dominance rejected similar resistance levels and capital flowed into alternative cryptocurrencies. Patel notes that the technical resistance, historical patterns, and cycle timing create a compelling case for altcoin outperformance.

The projected timeline for this potential shift extends into mid-to-late 2026, following the typical pattern of halving events leading to market peaks and subsequent altcoin dominance. Analysts suggest that quality altcoin accumulation may be prudent given the current market structure. The technical indicators suggest that momentum could shift rapidly if Bitcoin dominance fails to break through the resistance zone.

Historical precedent shows that when these setups trigger, the resulting altcoin rallies can be substantial and swift. Small-cap altcoins are already showing signs of life with notable gainers including AirSwap and USDC. The Altcoin Index currently reads 15 out of 100, suggesting room for growth if market conditions shift favorably.

Market volatility saw over $1 billion in liquidations as Bitcoin briefly dropped below $100,000 following geopolitical tensions. Despite the turbulence, the crypto market cap maintains $3.27 trillion with Bitcoin trading around $101,960 and Ethereum at $2,265. The Fear and Greed Index registers 47, indicating neutral to fearful sentiment.