Bitcoin News Today: Bitcoin Dominance Faces Extended Decline as Altcoins Gain Traction: Experts

Bitcoin’s market dominance appears set for a prolonged period of bearish momentum, according to analysis from two prominent cryptocurrency experts. The technical indicators currently suggest a potential shift in market dynamics, with altcoins poised to gain traction as Bitcoin’s relative strength weakens.

Pseudonymous analyst Master Ananda highlighted a critical breakdown in Bitcoin’s long-term uptrend, marked by a weekly trading volume surge to levels last seen in February 2021 [1]. This development, coupled with a sharp rejection of the 64.35% resistance on the Bitcoin Dominance Index (currently at 61.42%), signals a weakening in BTC’s dominance over the broader crypto market [1]. Ananda pointed to a bearish engulfing candle on the weekly chart as a key confirmation of this trend, indicating a loss of momentum for Bitcoin’s relative performance [1]. The index now hovers near pivotal Fibonacci levels at 61.65% and 60.30%, with a failure to reclaim these thresholds reinforcing the bearish outlook. Should the index fall below 58.94%, further declines toward 57.01% and even 47.44% could open the door for a broader altcoin resurgence [1].

Ananda drew parallels to February 2021, when a similar high-volume breakdown in Bitcoin dominance preceded a widespread altcoin rally [1]. The current setup suggests a comparable scenario, with Bitcoin entering a consolidation phase as altcoins gather strength. While short-term pullbacks may offer repositioning opportunities, tightening timeframes and robust resistance levels point to an imminent decline in BTC’s dominance [1].

Michaël van de Poppe, a cryptocurrency trading expert, echoed these sentiments on July 28, noting that the Bitcoin dominance chart exhibits clear signs of sustained downside pressure [1]. He emphasized a bearish divergence forming since early June, now confirmed by a breakdown below the 52.50% level. This divergence, coupled with a declining RSI, indicates a shift in momentum toward altcoins [1]. Historical data supports this, as previous bearish divergences in Bitcoin dominance have consistently triggered short-term altcoin rallies following reversals [1].

At press time, Bitcoin traded at $118,277, consolidating just below the $120,000 mark. While the asset saw a 0.16% increase over 24 hours, it recorded a 0.76% weekly decline, reflecting broader market uncertainty [1]. The interplay of technical indicators and expert analysis underscores a potential structural shift in the crypto market, with Bitcoin’s dominance likely to wane in the near term.

The implications of this bearish outlook extend beyond Bitcoin itself. As altcoins gain traction, investors may reallocate capital to alternative projects, mirroring patterns observed during the 2021 bull run. However, the extent of Bitcoin’s dominance decline will depend on macroeconomic conditions and broader market sentiment, which remain key variables in the crypto space.

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Source: [1] [Expect extended Bitcoin dominance bearishness, warns expert](https://finbold.com/expect-extended-bitcoin-dominance-bearishness-warns-expert/)