Bitcoin's supremacy is put to the test at a crucial support line as the value of Bitcoin remains above $115,500
In the world of cryptocurrency, a significant shift is underway. Recent technical and market sentiment factors have led to a potential decline of 17% in Bitcoin dominance, with increased volatility in altcoin markets.
The current testing of a critical point on the Bitcoin dominance chart is a key factor in this development. This chart, which has guided the market's directional flow since late 2022, is now being tested against a significant ascending trendline that has held for nearly two years. Any dip could increase volatility across altcoin markets, as Bitcoin's market share contracts.
The Bitcoin dominance chart is currently showing a potential turning point in broader market behavior. Bitcoin has experienced a 7-day decline of 4.3%, and all eyes remain on the upcoming weekly closes, which will determine the strength of this trendline.
Technical exhaustion and bearish signals on Bitcoin dominance charts are a major contributor to this trend. Bitcoin dominance reached a peak around 66% in late June 2025, coinciding with a key Fibonacci retracement level (0.786), often considered a reversal zone. There was an all-time high monthly RSI on the Bitcoin dominance chart, indicating an overbought condition likely leading to an RSI crash. Additionally, the MACD indicator for Bitcoin dominance has crossed into bearish territory, signaling a potential reversal from Bitcoin to altcoins.
The decline is also driven by a "risk-on" sentiment, where investors seek higher returns in smaller, high-potential altcoins. This is supported by macroeconomic factors such as a dovish U.S. Federal Reserve monetary policy and optimism surrounding Ethereum’s technical upgrades after its merge, causing capital rotation away from Bitcoin’s perceived lower-risk profile.
Key dominance support zones lie near 54% and 51%. A clear drop below the dominance trendline would mark the first major structural shift in over 18 months. Market participants are closely monitoring volume spikes and price reactions around this pivotal level.
At the time of writing, the current Bitcoin price is $115,511, with a 24-hour trading range between $115,259 and $119,415. The potential risk of breakdown in the Bitcoin dominance chart could lead to a decline of approximately 17%.
[1] CoinDesk [2] Bloomberg [3] Santiment [4] Cointelegraph
- The ongoing decline in Bitcoin dominance, as indicated by the Bitcoin dominance chart, is causing a shift in the cryptocurrency market, with investors increasingly favoring altcoins over Bitcoin due to a "risk-on" sentiment, according to reports from CoinDesk, Bloomberg, and Cointelegraph.
- The rise in volatility across altcoin markets can be attributed to the testing of the Bitcoin dominance chart's critical point and the potential breakdown of the trendline, as highlighted by Santiment. This breakdown, if it occurs, could lead to a 17% decline, demonstrating the significant impact of cryptocurrency finance, technology, and market trends.
