Bitcoin dominance hits 65.37% as altcoin market loses over $110B, signaling major shifts in crypto capital allocation patterns.
Technical indicators show BTC dominance nearing breakout zone while altcoins remain trapped in a bearish channel despite brief rebounds.
MACD and RSI readings reflect weakening altcoin momentum while BTC dominance continues climbing within a long-term ascending channel.
Bitcoin's market dominance has reached a level of 65.37%, signaling potential turning points for the crypto market. The dominance chart, covering May 2024 to July 2025, shows a consistent upward trend within an ascending channel. Bitcoin's growing influence has coincided with altcoin weakness, sparking fresh concerns over capital rotation.
Source: Moustache
The price action inside this ascending channel shows repeated bounces at the lower trendline. Each bounce marked bullish support confirmation. Conversely, rejections near the upper boundary have created visible resistance zones. These patterns have allowed traders to time positions using channel strategy indicators. Entry points, stop-loss zones, and take-profit levels appeared clearly within green and red areas.
Altcoin Market Sees Decline Amid BTC Strength
Meanwhile, the total crypto market cap excluding Bitcoin and Ethereum shows bearish structure. Since late May, the altcoin segment has lost over $110 billion. Market cap peaked near $950 billion before dropping sharply to $760 billion by late June.
Source: TradingView
Moreover, a descending trendline outlines multiple rejection points. This confirms a bearish channel that continues to pressure altcoin valuations. Although early July saw a brief rebound above $820 billion, technical indicators remain cautious.
The MACD has stayed largely negative. Bearish crossovers occurred repeatedly, showing prolonged downward momentum. However, recent sessions show MACD approaching neutral levels, offering some short-term relief.
Additionally, the RSI reflects this volatility. It dipped below 30 during the selloff, indicating extreme oversold conditions. As of now, RSI has recovered to 58.35, hinting at ongoing consolidation.
Key Levels Suggest Market Inflection Point
Currently, Bitcoin dominance trading at the channel’s top boundary calls for close observation. Sustained moves beyond this could trigger breakout scenarios. Historically, such breakouts or breakdowns lead to accelerated momentum.
Besides, volume spikes during dominance surges indicate significant shifts in market sentiment. Consequently, altcoin investors may remain on edge until clarity emerges.
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