Bitcoin News Today: BTC Dominance at 61.6% Recreates 2021 Pattern, Altcoin Rally Possible if Support Falls Below 60%

Bitcoin’s market dominance has begun to mirror its 2021 trajectory, raising speculation about a potential altcoin rally following a period of consolidation. The current dominance level, hovering near 61.6%, replicates a pattern observed in early 2021 when dominance peaked before entering an eight-week sideways phase. Historical data suggests that a decline in Bitcoin’s dominance from peak levels to below 60% in 2021 preceded a significant reallocation of capital toward alternative cryptocurrencies[1]. Market participants are now monitoring whether similar dynamics could unfold as the 60–62% support range for BTC dominance becomes a pivotal threshold. A sustained break below this zone could signal weakening Bitcoin demand and rising altcoin appeal, with historical parallels indicating a potential surge in niche assets[1].

Recent price movements reinforce this narrative. Bitcoin’s 24-hour price decline of 2.66%, bringing its value to $115,596, alongside a 3.36% weekly drop, has intensified expectations for a shift in market dynamics[1]. The combination of falling Bitcoin prices and dominance consolidation has led traders to consider altcoins as a higher-risk, higher-reward alternative. While the timing of a potential altcoin surge remains uncertain, the visual symmetry between 2021 and the current pattern suggests a similar capital rotation scenario may be developing[1].

A 4-year cycle theory discussed on Binance posits that even a weaker version of the 2021 rally (+136.49%) could push Bitcoin toward $180,000. However, this remains a forecast and contingent on dominance evolving as anticipated[2]. Analysts emphasize that a prolonged sideways movement in dominance, as seen historically, often precedes major market shifts. Investors are advised to remain cautious but attentive, as Bitcoin’s price and dominance interplay will likely dictate the next phase in crypto dynamics[1].

Market observers highlight the critical role of the 60–62% support range for BTC dominance. A decline below this level could drive dominance toward 50% or 45%, reinforcing altcoin strength. The 2021 bull run demonstrated that such a drop in dominance typically precedes a surge in altcoin activity, as capital redirects toward smaller, more volatile assets[1]. The current sideways movement in dominance, combined with Bitcoin’s recent price weakness, has heightened speculation that traders may pivot to altcoins in search of higher returns.

The market remains in a watchful phase, with traders closely monitoring whether BTC dominance will breach the 60–62% range. Historical patterns suggest that a decline in dominance from peak levels often triggers a shift in capital toward alternative cryptocurrencies, but the exact timing and magnitude of such a move remain subject to further data. Investors are urged to track Bitcoin’s price movements and dominance levels as key indicators of broader market sentiment[1].

Source:

[1] [BTC Dominance Repeats 2021 Pattern, Altcoin Rally May Follow After Sideways Action] [https://www.ainvest.com/news/bitcoin-news-today-btc-dominance-hovers-61-6-2021-pattern-emerges-altcoin-surge-looms-2507/]

[2] [Latest signals News, Opinions and Feed Today] [https://www.binance.com/en/square/hashtag/signals]