Bitcoin News Today: Ethereum Drops 4.06% as Bearish Bat Pattern in Bitcoin Dominance Signals Altcoin Weakness

The cryptocurrency market is experiencing a shift in momentum as Ethereum (ETH) retreats from its 24-hour peak of $3,940, trading near $3,780 following a period of strong gains. This moderation in price action is cascading into major altcoins, with many facing mild downward pressure as traders recalibrate positions. The broader market sentiment has turned cautiously bearish, fueled by the emergence of a key harmonic pattern in Bitcoin’s (BTC) dominance index, which could amplify downward pressure on alternative cryptocurrencies in the near term [1].

Bitcoin dominance (BTC.D), a critical metric measuring BTC’s share of total cryptocurrency market capitalization, is forming a Bearish Bat harmonic pattern on the 4-hour timeframe. This pattern, identified by analysts, suggests a potential continuation of rising BTC dominance and corresponding weakness in altcoins during the pattern’s final leg (CD). The structure began with a decline from point X near 64.8%, followed by a rebound to point B, a dip to point C at 60.7%, and is now advancing along the CD leg toward a projected target range of 64.3% to 64.8%. A successful completion of this pattern would likely see BTC dominance reclaiming its previous peaks, which historically correlates with altcoin underperformance [1].

The implications for altcoins are clear: as Bitcoin’s market share expands, capital tends to flow back into BTC, often triggering sell-offs in smaller-cap cryptocurrencies. The Potential Reversal Zone (PRZ) between 64.3% and 64.8% has emerged as a critical level to monitor. If BTC dominance stalls or reverses within this range, altcoins may find temporary support. However, a decisive break above 64.8% could signal deeper corrections for alternative tokens, as traders prioritize Bitcoin as a perceived safe haven amid market consolidation [1].

While short-term volatility is expected, the overall market structure remains intact as long as Bitcoin dominance stays below 65%. This threshold acts as a psychological barrier; a sustained breach could signal a broader reallocation of capital away from altcoins. Conversely, if the harmonic pattern fails to materialize—such as through a reversal within the PRZ—altcoins might regain traction, provided macroeconomic conditions and broader market sentiment remain stable [1].

Analysts emphasize that the Bearish Bat pattern is a technical indicator and not a definitive predictor of future price action. Market dynamics, including macroeconomic factors and regulatory developments, will ultimately determine the trajectory of altcoins. Investors are advised to remain cautious, particularly as the pattern’s projected target coincides with key psychological and historical resistance levels for BTC dominance.

Source: [1] [Altcoins To See Mini Pullback? Key Harmonic Pattern Signals Potential Downside Move] [https://coinmarketcap.com/community/articles/6887cb5dfb184a125f70cdc7/]