Bitcoin News Today: Bitcoin's 61.3% Dominance Near 64% Resistance Sparks Altcoin Rally Fears

Bitcoin’s market dominance is encountering critical resistance near the 64% threshold, with analysts warning that a sustained pullback could trigger a broad altcoin rally. The metric, which measures the percentage of total crypto market capitalization held by Bitcoin, currently stands at 61.3%, having gained over 23 percentage points since mid-2024 as Bitcoin outperformed most altcoins. However, this level aligns with historical resistance zones that have previously capped Bitcoin’s upside moves. Technical indicators, including a downward trend on charts and a potential three-week MACD bearish cross—a signal last seen in January 2020—suggest a correction may be forming. The prior bearish cross preceded a 105-day altcoin season marked by explosive gains in smaller tokens, prompting market participants to draw parallels to current conditions [1].

Altcoin indices such as TOTAL2 and TOTAL3 have recently formed golden crosses, a bullish signal often associated with capital rotation from Bitcoin to alternative cryptocurrencies. These crosses typically mark the start of extended periods of altcoin outperformance, with traders expecting a potential multi-month rally if historical patterns repeat. Analysts note that Bitcoin’s current technical setup, including its proximity to the upper boundary of a long-term rising channel since December 2020, increases the likelihood of a breakdown. Failure to break above 64% could open the door for undervalued altcoins to attract fresh inflows after months of lagging behind Bitcoin [2].

The altcoin market has shown early signs of strength, with Ethereum surging past $3,200 in early July and outpacing Bitcoin and Solana in price performance. XRP, Solana, and Dogecoin have also experienced rallies, reinforcing the narrative of a potential reallocation of capital. However, momentum remains uneven. While Optimism (OP) rebounded to $0.73, it faces resistance at $0.82, and Celestia (TIA) struggles to hold above $1.47, indicating fragmented activity across the altcoin spectrum [3].

Bitcoin’s immediate price action will be pivotal in determining the trajectory of the market. After dipping to $115,000 in late July, the asset is testing resistance at the same level, a critical threshold for maintaining its bullish trend. A consolidation or correction in Bitcoin could further tilt the balance in favor of altcoins, particularly as the Fear & Greed Index hovers near 31—a bearish reading that suggests cautious sentiment may delay a decisive altcoin season [4].

Market participants remain divided on the timing and scale of an altcoin rally. While technical signals and historical patterns suggest favorable conditions, Bitcoin’s ability to maintain dominance will hinge on its performance against key price thresholds. If Bitcoin fails to break above critical resistance, altcoins could continue to attract investor attention, potentially ushering in a new phase of market diversification.

Source: [1] [Bitcoin Dominance Faces Key Resistance as Altcoin Season Looms](https://cryptofrontnews.com/bitcoin-dominance-faces-key-resistance-as-altcoin-season-looms/) [2] [Cooling markets as Fed rate decision and crypto report](https://discover.luno.com/daily-briefing/) [3] [Ethereum outpaces Bitcoin and Solana, surges above](http://www.msn.com/en-in/money/markets/ethereum-outpaces-bitcoin-and-solana-surges-above-3200-trader-predicts-a-shocking-30000-top/ar-AA1IJ37Y) [4] [Real-Time Crypto News, Latest Cryptocurrency Updates](https://www.coinglass.com/news)