Bitcoin dominance retested the 65 level after breaking below a wedge formed over 180 trading days.
The breakdown followed rejection from a tightening resistance channel that started in late 2024.
Many altcoins may rise if dominance drops under 63 as charts suggest weaker control from Bitcoin now.
Bitcoin dominance has broken below a rising wedge support and is now retesting the lower boundary near the 65.0% level. This technical behavior could signal a wider trend reversal in favor of altcoins as traders watch for confirmation. Anup Dhungana, a crypto analyst, shared this outlook on May 25, 2025, indicating that BTC dominance is likely to decline from here.
Source: X
The breakdown follows a steady upward channel that started in December 2024 and peaked near 56.5% before the recent retracement. Dominance dropped sharply after failing to hold the upper wedge resistance. BTC.D charts reveal the pattern clearly, showing dominance retreating below both dynamic trendlines.
Now, the market awaits the outcome of the current retest. A rejection at resistance could drive capital into altcoins.
Technical Pattern Shows Long-Term Structure
The wedge pattern spans from late 2024 into May 2025 and defines BTC dominance movements across more than six months. The upper trendline touched several resistance levels before the final breakout failed. This confirms the structure’s validity across multiple timeframes.
Support levels followed a tight ascending path, eventually leading to a narrowing channel. Analysts often view this pattern as bearish due to its rising yet weakening momentum. When price breaks below support, it usually initiates a downward move with increased volatility.
Current price action places BTC dominance just under the 65.5% area. The retest remains in progress, and traders are watching for rejection signals. If dominance falls back, it would confirm the pattern and invite more trading volume into non-Bitcoin assets.
The chart data was sourced from CoinMarketCap, with visual confirmation shared through the BTC.D daily timeframe.
Altcoins Gain Traction as Bitcoin Cools
The shift in BTC dominance opens potential opportunities for altcoin investors. Historically, declines in dominance coincide with capital rotation into alternative cryptocurrencies. Market participants often consider this a bullish signal for tokens outside of Bitcoin.
As of May 25, BTC dominance dipped below 64.2% before attempting a bounce. However, the recovery lacked strong momentum. Many traders now anticipate further downside should the retest at resistance fail.
The declining dominance could also reflect diversification by institutional investors. With increasing confidence in infrastructure and technology supporting altcoins, more capital may shift toward other ecosystems like Ethereum and Solana.
Could BTC Dominance Rejection Fuel the Next Altcoin Rally?
With technicals pointing to a retest failure, investors face a pivotal question: will capital rotate quickly enough to spark an altcoin rally?
According to Dhungana’s earlier statement from May 18, BTC dominance was already nearing resistance and likely to resume downward. This came days before the actual break and subsequent retest. If dominance fails to reclaim the wedge boundary, it could validate his forecast and boost altcoin performance.
