Bitcoin Dominance: The Approaching Cycle Peak and Major Correction Signal
The Bitcoin dominance chart from May 10, 2025, reveals a fascinating technical formation that forecasts a significant market shift in the coming months. Currently at 63.39%, BTC dominance has reached a critical inflection point that demands investor attention.
Pattern Analysis: Terminal Extension Phase
The weekly chart shows Bitcoin dominance has formed a clear ascending channel (yellow boundaries) since the 2022 bottom. What's particularly noteworthy is how price action has reached the confluence of two major resistance zones:
1. The long-term descending resistance (white diagonal) dating back to 2021's 73.63% peak
2. The upper boundary of the current ascending channel
This dual resistance intersection creates what technical analysts call a "Terminal Extension Pattern" - typically the final phase before significant trend reversal.
Distribution Structure Forming
The two horizontal red zones represent likely distribution ranges where institutional investors may begin rotating capital from Bitcoin into altcoins. These distribution zones are strategically positioned at:
- Primary zone: 62-65% (current trading range)
- Secondary zone: 55-58% (first major support)
Projected Correction Pathway
The blue arrows map the anticipated dominance decline:
1. Initial rejection from current levels (63-65%)
2. Corrective bounce at first support (55-58%)
3. Secondary decline toward 50% psychological level
4. Final capitulation toward 38.84% over 6-12 months
Market Implication: "The Great Rotation"
This technical setup suggests the cryptocurrency market is preparing for a significant capital redistribution from Bitcoin toward alternative cryptocurrencies. The declining volume (-0.40%) despite upward price movement (+0.03%) indicates diminishing momentum, a classic divergence preceding major reversals.
The implications are substantial for portfolio strategy - while Bitcoin may continue appreciating in USD terms, altcoins may outperform substantially on a relative basis through 2026, creating exceptional opportunities for portfolio rebalancing.
Investors should monitor the 65.38% level closely as the final resistance before confirmation of this multi-year reversal pattern.
OTHERS.D chart analysis here
and for ETH-BTC analysis here
and for ETH.D analysis here
HELP US WITH LIKE AND FOLLOW GUYS .. THANK YOU
The Bitcoin dominance chart from May 10, 2025, reveals a fascinating technical formation that forecasts a significant market shift in the coming months. Currently at 63.39%, BTC dominance has reached a critical inflection point that demands investor attention.
Pattern Analysis: Terminal Extension Phase
The weekly chart shows Bitcoin dominance has formed a clear ascending channel (yellow boundaries) since the 2022 bottom. What's particularly noteworthy is how price action has reached the confluence of two major resistance zones:
1. The long-term descending resistance (white diagonal) dating back to 2021's 73.63% peak
2. The upper boundary of the current ascending channel
This dual resistance intersection creates what technical analysts call a "Terminal Extension Pattern" - typically the final phase before significant trend reversal.
Distribution Structure Forming
The two horizontal red zones represent likely distribution ranges where institutional investors may begin rotating capital from Bitcoin into altcoins. These distribution zones are strategically positioned at:
- Primary zone: 62-65% (current trading range)
- Secondary zone: 55-58% (first major support)
Projected Correction Pathway
The blue arrows map the anticipated dominance decline:
1. Initial rejection from current levels (63-65%)
2. Corrective bounce at first support (55-58%)
3. Secondary decline toward 50% psychological level
4. Final capitulation toward 38.84% over 6-12 months
Market Implication: "The Great Rotation"
This technical setup suggests the cryptocurrency market is preparing for a significant capital redistribution from Bitcoin toward alternative cryptocurrencies. The declining volume (-0.40%) despite upward price movement (+0.03%) indicates diminishing momentum, a classic divergence preceding major reversals.
The implications are substantial for portfolio strategy - while Bitcoin may continue appreciating in USD terms, altcoins may outperform substantially on a relative basis through 2026, creating exceptional opportunities for portfolio rebalancing.
Investors should monitor the 65.38% level closely as the final resistance before confirmation of this multi-year reversal pattern.
OTHERS.D chart analysis here
and for ETH-BTC analysis here
and for ETH.D analysis here
HELP US WITH LIKE AND FOLLOW GUYS .. THANK YOU
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.