According to an analyst on X, Bitcoin's influence in the market seems too strong for altcoins to break out in the near future. Bitcoin's price rose to around $104,000 after a 0.4% increase. The price briefly dropped to $103,000, but buyers quickly stepped in.

That push brought the price back to the $105,000 mark. At the same time, the U.S. Federal Reserve kept interest rates unchanged, causing traders to be cautious of any spillover effects.

Explanation of the Bull Market Support Band

Based on reports, the Bull Market Support Band lies between two major moving averages. One is the 20-week simple moving average. The other is the 21-week exponential moving average.

Together, they form a region that Bitcoin Dominance has used as a springboard throughout the year. When dominance tests that area, it often bounces higher rather than dropping further.

Historical Support Check

Bitcoin's dominance has decreased from around 56% in June 2024 to 54% in July of that year but has found support. It also fell from 58% to 56% from late December 2024 to January 2025.

Each time, the support band remains firm. More recently, dominance has dropped to 61% on May 14 after peaking at 65% on May 7, only to recover to 64% in a few days.

Analyst's Warning and Scenario

Other experts see a different picture. Bitcoinsensus warns that dominance could "plummet" before any altcoin season begins. That view suggests a sudden drop, which could create opportunities for altcoins.

An analyst points out a potential double top pattern in dominance. If Bitcoin cannot break through the resistance level, money may flow into altcoins. However, if dominance rises higher, some believe Bitcoin could head towards a new record.

Limit of Dominance Data

Dominance only measures Bitcoin's market share in the total cryptocurrency market capitalization. It can slide down if stablecoins flood in or if new tokens launch, even if altcoins do not increase in price. An increase in dominance may mean that altcoins are being sold off.

Traders should be aware that moving average support lines can fail in volatile markets. A pattern that works for months may break down as conditions change.

Ultimately, the Bull Market Support Band provides a clear trend line. It shows that Bitcoin remains the preferred choice for many investors. However, relying on a technical tool can miss larger moves driven by real news or new blockchain data.