Bitcoin News Today: Bitcoin Dominance Plunges 4.6% Below 66% Support Altcoins Gain 1.77%

Bitcoin’s market dominance has fallen below a critical technical support level after repeated failures to maintain a foothold above 66%, sparking renewed speculation about the shifting dynamics of capital allocation within the cryptocurrency market. The metric, which measures Bitcoin’s share of the total crypto market capitalization, declined by 4.6% month-over-month, dropping from 65.1% to 60.4% as of July 27, 2025, according to CoinMarketCap data. This decline marks a significant structural breakdown, with Ethereum and other altcoins expanding their collective influence [1].

The waning dominance of Bitcoin follows a pattern of four distinct rejections at the 66% threshold, a level that had previously functioned as a key psychological and technical resistance. Each attempt to reclaim this level was met with sharp reversals, indicating persistent selling pressure near the upper bounds of the established trading channel. Analysts highlight that these repeated failures suggest a shift in investor sentiment, with capital increasingly flowing into alternative cryptocurrencies. Ethereum’s share of the market rose by 2.82% during the same period, climbing from 8.9% to 11.8%, while the combined dominance of other altcoins increased by 1.77% to 27.8% [1].

Technically, the breakdown below the 66% resistance has triggered a reassessment of Bitcoin’s long-term trajectory. After riding an ascending trendline since mid-2023, BTC.D—Bitcoin’s dominance index—has now breached a critical support zone near 62%. The collapse through this level, marked by a large bearish candlestick, has shifted momentum to the downside. Traders are closely monitoring the 60% level, a previously tested support area that has been retested multiple times. A further decline toward 54% is projected if the price closes below this threshold, reinforcing the bearish outlook until dominance reclaims the 66% resistance [1].

The redistribution of market share reflects broader thematic shifts in the crypto ecosystem. Ethereum’s recent gains are attributed to its role as a foundational platform for decentralized applications and its ongoing upgrades, which have enhanced scalability and utility. Meanwhile, altcoins are benefiting from a more fragmented risk-on environment, where investors are diversifying exposure amid Bitcoin’s relative underperformance. However, market participants caution that the current trend does not automatically signal an “altseason”—a period characterized by widespread altcoin rallies. Historical data shows that Bitcoin’s dominance has periodically dipped below 40% during altseasons, but macroeconomic conditions, regulatory developments, and Bitcoin’s own narrative as a store of value remain critical determinants of long-term market behavior [1].

The technical breakdown has also prompted strategic adjustments among traders and institutional players. Some are reallocating capital to altcoins with strong fundamentals, though liquidity constraints and volatility in the sector remain challenges. The interplay between Bitcoin and altcoin activity underscores the interconnected nature of the crypto market, where movements in one asset class often influence broader sentiment. For now, on-chain metrics and volume patterns will be key indicators of whether the current trend persists or reverses in response to macroeconomic catalysts or regulatory clarity [1].

Source: [1] [BTC Dominance Breaks Below Key Support Following Multiple Rejections at 66%] [https://cryptonewsland.com/btc-dominance-breaks-below-key-support-followin/]