An analyst on X highlights Bitcoin’s strong market dominance, suggesting altcoins may struggle to gain momentum soon. Bitcoin’s price recently rose about 0.4%, reaching approximately $104,000 after briefly dipping to $103,000, with buyers quickly pushing it back near $105,000.
Meanwhile, the US Federal Reserve maintained interest rates, keeping traders vigilant for potential market impacts.
Understanding the Bull Market Support Band
The Bull Market Support Band is defined by two key averages: the 20-week simple moving average and the 21-week exponential moving average. This zone has consistently supported Bitcoin Dominance throughout the year, often causing it to rebound rather than decline further when tested.
Historically, Bitcoin Dominance has held above this band during multiple declines, such as drops from 56% to 54% in mid-2024 and from 58% to 56% between late 2024 and early 2025. More recently, dominance dropped from 65% to 61% in early May 2025 before recovering to 64% within days.
Analyst Perspectives
Some experts, like Bitcoinsensus, warn that Bitcoin Dominance could experience a sharp decline, potentially paving the way for an altcoin surge. Another analyst points to a possible double-top pattern in dominance; failure to surpass resistance might redirect investment into altcoins, whereas breaking higher could push Bitcoin toward new highs.
Limits of the Dominance Metric
Bitcoin Dominance reflects Bitcoin’s share of total cryptocurrency market capitalization but can be influenced by factors such as stablecoin supply growth or new token launches, unrelated to altcoin price movements. Additionally, rising dominance may indicate altcoin sell-offs.
While moving averages can signal trends, they may fail in volatile markets. Relying solely on these technical indicators can overlook significant shifts driven by macroeconomic news or blockchain developments.
Currently, Bitcoin’s dominance remains stable, maintaining its status as a primary market player unless disrupted by major future events.