Bitcoin News Today: Bitcoin Dominance Drops 3.28% as Altcoins Gain Traction

Bitcoin dominance has experienced a significant decline, falling from 66.42% to 63.14% after breaking through a rising wedge structure. This decline has led to a notable shift in the cryptocurrency market, with altcoins gaining traction. The total market capitalization share of Bitcoin has decreased rapidly, indicating a major technical transition as altcoin adoption increases.

In parallel with Bitcoin's decline, Ethereum has shown strong upward momentum. This rotation in Ethereum aligns with growing momentum across various alternative assets, including memecoins and other Layer 1 assets. The total crypto market cap excluding Bitcoin now displays a visible cup-and-handle pattern, suggesting broader strength across the altcoin sector.

A structural breakdown occurred in Bitcoin dominance following the failure of a long-standing rising wedge pattern. This wedge, which had been building since early 2024, snapped this week, leading to a rapid decrease in BTC dominance by more than 3 percentage points. Technical analysts had been tracking this wedge for several weeks, and its failure adds to expectations for near-term volatility across alternative tokens.

Historically, when BTC dominance breaks, flows into Ethereum and other altcoins have increased. The latest drop supports this trend, with Ethereum beginning to rotate upward. Its recent breakout aligns with a shift in market allocation, where altcoins typically respond with greater volatility during BTC pullbacks or consolidations. This rotation is not isolated, as multiple Layer 1 assets and memecoins are showing renewed strength, with increasing activity outside Bitcoin.

A larger pattern has now formed on the total altcoin market capitalization chart. The weekly time frame reveals a well-defined cup-and-handle structure, spanning from early 2022 through mid-2025. This pattern mirrors textbook accumulation shapes, with the handle portion recently completed coinciding with Ethereum’s breakout and the decline in BTC dominance. Historically, breakouts from cup-and-handle patterns are associated with sustained upward movement, with the chart projection placing the potential target above $2.8 trillion in total altcoin market cap.

Current levels show the breakout nearing the neckline resistance around $1.8 trillion. Price action above this level may confirm the structure. Until then, market participants are observing the alignment of technicals, including the dominance breakdown and strength across non-BTC assets. This shift in the market dynamics suggests a potential for significant growth in the altcoin sector as Bitcoin's dominance continues to wane.