Bitcoin dominance has reached the 66% mark, testing a resistance level not seen since the last cycle peak over four years ago.
Market participants show peak bearish sentiment toward altcoins, mirroring historical patterns seen before major trend reversals in previous cycles.
The 66% level on Bitcoin dominance aligns with a long-term 8-year trendline, often associated with altcoin recovery phases in past markets.
Bitcoin dominance faces a multi-year resistance, and traders are eager to monitor the move to see whether the market has shifted.
Bitcoin Dominance Tests 66% Resistance After 4.5-Year Climb
CryptoBoss pointed to $BTC.D testing the 66% resistance level—its highest in 4.5 years. This point also aligns with a broader 8-year trendline. The dominance chart reflects Bitcoin’s growing share of the total crypto market, mainly at the expense of altcoins. Such levels have historically coincided with turning points in market cycles.
https://twitter.com/CryptoBoss1984/status/1939727463288115533
As Bitcoin dominance climbs, altcoins have continued to lag. Over the past several years, capital has moved steadily into Bitcoin, pushing altcoins further into underperformance. However, the chart suggests that this dominant trend may be running out of momentum. Traders now see this resistance zone as a possible reversal point where altcoins might begin to regain relative strength.
Sentiment Turns Bearish Amid Extended Altcoin Weakness
CryptoBoss explained how investor emotions often follow extended market conditions. When prices grind down over time, traders tend to accept the downtrend as permanent. This psychological effect has dominated altcoin sentiment, with many now doubting any recovery. The reference to Bitcoin’s time at $15,000 highlights a similar market mindset—when traders believed the asset could never return to previous highs.
The 4.5-year decline in altcoin performance has worn out investor confidence. Despite this, current sentiment mirrors previous periods right before major market turnarounds. The more extreme the bearish consensus becomes, the more attention traders pay to historical reversal patterns. Bitcoin dominance reaching this resistance could serve as the technical trigger.
Historical Patterns Suggest a Cycle Shift May Be Near
Market watchers are noting that sentiment extremes often precede trend changes. As $BTC.D now tests a level unseen in 4.5 years, the market may be nearing such a moment. The convergence of a psychological low in altcoins and a technical high in Bitcoin dominance may provide the conditions for a shift.
While no confirmation has emerged yet, the setup now being observed draws parallels to previous altcoin cycle beginnings. Traders will be monitoring the 66% level closely in the coming sessions.
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