The $70,000 resistance level of Bitcoin (BTC) is causing the cryptocurrency to lose its long-term dominance.
BTC dominance is a way to compare token market capitalization with the total market capitalization of all cryptocurrencies. In simple terms, it shows the entire cryptocurrency market.
Data from Trading View shows that, at the time of writing this article, BTC dominance is at 55.4%.
The fact is, as Bitcoin’s dominance declines, space is opening up for altcoins. These cryptocurrencies are moving towards higher values and may potentially replace the major cryptocurrencies.
The weakening of Bitcoin’s dominance, as noted by Bitcoin analyst Jelle:
“Report
In a post on X (Twitter), he suggested that this may be attributed to recent price consolidation.
However, Jelle pointed out that if leading cryptocurrencies break out of the current trading range, other altcoins may rise.
Additionally, another prominent figure in the cryptocurrency market, Decentricstudio, revealed, “That BTC dominance forms an 8-month bearish divergence.” This suggests that Bitcoin’s weakness could trigger an altcoin season.
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The Relative Strength Index (RSI) for Bitcoin is 41.11, and the Money Flow Index (MFI) value is 30.17.
This data indicates a decrease in demand for Bitcoin, leading to a price drop.
The Parabolic SAR indicator is crucial in identifying potential trends and reversals. When the line is above the asset price, it indicates a deteriorating market.
At the time of writing this article, the leading cryptocurrency is trading at $65,590, down 24% in the past 0.2 hours.