BTC dominance has broken below a rising wedge, indicating a potential shift toward altcoins.
A continued decline toward 48%–49% could fuel a broader altcoin rally.
Current recovery (wave “b”) appears limited; a deeper correction (wave “c”) may follow soon.
Bitcoin’s dominance in the crypto market, currently hovering near 52.07%, is showing signs of weakening after a sharp reversal from the recent highs around 54.36%. According to chart patterns visible on the daily timeframe, BTC dominance (BTC.D) has broken below an ascending wedge—a structure often associated with bearish reversals.
Market analysts are watching closely as the recent corrective bounce (wave “b”) appears to be short-lived, suggesting another bearish impulse (wave “c”) could follow. If confirmed, this shift could signal a renewed phase of capital rotation into altcoins.
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Pattern Breakdown and Bearish Setup
The ascending wedge, drawn from December 2023 through May 2025, shows a classic rising trend structure that was eventually breached. The breakdown came with high momentum, signaling a loss of strength in Bitcoin’s market share. This move marked the beginning of a three-wave correction pattern.
Currently, BTC.D appears to be in the middle of wave “b,” a minor recovery from the steep decline (wave “a”) seen earlier this month. However, with price action failing to reclaim the lower boundary of the broken wedge, the structure remains fragile.
Market Implications and Altcoin Outlook
A continuation of the bearish leg (wave "c") could drive BTC.D below 50%, possibly to the 48%–49% range. Such a decline would historically be consistent with stronger performance in the altcoin universe as investor focus would shift away from Bitcoin and toward lower-cap tokens. The wider implications of the crypto market are significant: reducing dominance would historically be coupled with growing interest in altcoins, potentially initiating another wave of altcoin outperformance.
This shift in dominance does not always equate to a BTC price crash but rather reflects a more even distribution of market capital. As BTC.D retreats, liquidity may begin flowing into alternative assets, including DeFi tokens, layer-1s, and meme coins.
BTC Short-Term Forecast
For the next trading days, BTC dominance can be expected to move between 51.8% and 52.3%. On the bullish side, a push above 52.5% could indicate short-term strength in Bitcoin's dominance over the market, possibly delaying the altcoin rotation. However, a drop below 51.5% would confirm further downside, accelerating the corrective wave “c” and strengthening the outlook for an altcoin rally.
The post Market Watch: BTC.D Faces Bearish Pressure as Altcoins Prepare to Surge appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
