Bitcoin News Today: Bitcoin dominance drops 4.6 pps to 60.4% as Ethereum gains 2.82 pps, signaling capital reallocation.

Bitcoin’s market dominance has fallen below a critical technical level, signaling potential further declines and a shifting capital allocation trend in the cryptocurrency sector. Over the past month, Bitcoin’s share of the total crypto market dropped 4.6 percentage points to 60.4% as of July 27, 2025, marking its lowest level since December 7, 2024, when it hit 53.9% [1]. Concurrently, Ethereum expanded its dominance by 2.82 percentage points, rising to 11.8%, while the collective share of other cryptocurrencies increased by 1.77 percentage points to 27.8% [1]. The decline in Bitcoin dominance follows multiple failed attempts to reclaim the 66% resistance level, a pattern analysts have noted as structurally significant [1].

Technical analysis highlights repeated rejections at the 66% threshold, with four distinct points on the chart showing sharp reversals each time Bitcoin dominance (BTC.D) approached that level [2]. These rejections created a visible horizontal resistance zone, indicating sustained selling pressure. After the final failed attempt, BTC.D broke below the ascending trendline that had supported its dominance since mid-2023, shifting the trajectory to a downward bias [2]. The breakdown was confirmed when BTC.D closed below the 62% support level, with the price now facing a key test at the 60% mark, which has previously acted as both support and resistance [2]. Analysts warn that if the index closes below 60%, further declines toward 54% could follow, reinforcing a bearish outlook until dominance recovers above the red resistance line [2].

Historical context reveals Bitcoin’s dominance peaked at 65.1% on June 27, 2025, before entering a sustained decline. Ethereum’s dominance, meanwhile, has steadily climbed from a yearly low of 8.9% to 11.8%, reflecting broader investor interest in alternative cryptocurrencies [1]. Other assets have also gained traction, with their combined dominance rising to 27.8%—a 1.77 percentage point increase month-over-month [1]. Short-term movements show Bitcoin’s dominance dipping to 60.4% from 60.6% the prior day, while Ethereum’s share rose to 11.8% from 11.6% [1].

The decline in BTC.D contrasts with earlier periods of upward momentum, where Bitcoin dominance climbed consistently from mid-2023. The current trend suggests a redistribution of capital toward altcoins, driven by Ethereum’s growth and the broader sector’s expansion [1]. However, the breakdown below key technical levels raises questions about the sustainability of Bitcoin’s dominance and the potential for a prolonged bearish phase. Until BTC.D stabilizes above the red resistance zone or retests the 60% level without breaking it, the bearish narrative remains intact [2].

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