Bitcoin News Today: Bitcoin dominance tests key trendline, risks 17% drop as altcoin volatility looms

Bitcoin’s dominance in the cryptocurrency market is currently testing a critical two-year-old ascending trendline, raising concerns among traders about potential structural shifts in market dynamics. The indicator, which measures Bitcoin’s share of the total crypto market capitalization, has retreated from a multi-month high and now faces a key inflection point. A breakdown below this trendline could signal a 17% decline in dominance, according to weekly timeframe projections [1]. Such a move would mark the first major reversal in over 18 months and could trigger a surge in altcoin volatility as market capitalization reallocates. Analysts are closely monitoring the price action for confirmation of this structural shift, with the upcoming weekly close serving as a pivotal test for the trendline’s integrity [2].

Bitcoin’s price remains above $115,500, though it has faced downward pressure recently. As of the latest data, BTC is trading at $115,511, reflecting a 4.3% weekly decline. The 24-hour range is bounded by a support level at $115,259 and resistance near $119,415 [3]. Despite this correction, Bitcoin maintains its position as the largest cryptocurrency by market capitalization. However, the asset’s dominance—currently near a key psychological threshold—has weakened, with weekly candles showing deteriorating momentum near upper resistance zones.

Support levels for dominance now reside at 54% and 51%, both of which have historically acted as consolidation zones during previous market rotations. A sustained move below the current trendline would align with a projected 10.44 percentage point decline, further intensifying altcoin volatility [4]. Social media analysis by trader ZYN highlights that Bitcoin dominance peaked at 66% earlier this month, followed by an 8% drop—a development that aligns with bearish technical indicators such as RSI overbought conditions and a bearish MACD crossover [5]. ZYN anticipates a short-term decline to liquidate long positions before a potential rebound, but the broader trend remains under scrutiny.

Market participants are particularly focused on the implications of a trendline break. A confirmed breakdown would validate concerns about Bitcoin’s waning leadership role and could usher in a “Mega Altseason,” as suggested by trader CryptoFaibik. This term refers to periods when altcoins outperform Bitcoin following a shift in market capitalization dynamics. However, such a scenario is contingent on price and dominance levels failing to hold within current ranges [6].

The weekly closing prices will play a decisive role in determining the trendline’s validity. A close below the ascending structure would cement the bearish case, prompting further analysis of lower support levels and volume patterns. Traders are advised to monitor both price action and on-chain metrics for confirmation of directional bias.

Source: [1] [title1] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/) [2] [title2] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/) [3] [title3] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/) [4] [title4] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/) [5] [title5] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/) [6] [title6] [url1](https://cryptonewsland.com/bitcoin-dominance-tests-key-trendline-as-btc-price-holds-above-115500/)