Bitcoin’s share of the crypto market has retreated from roughly 66% to around 58%, suggesting traders are shifting capital toward Ethereum and other altcoins. Momentum indicators — including bearish RSI divergence and a confirmed wedge breakdown — hint that dominance could slide further, with potential downside levels near 50.56% and 48.32% if the trend continues.
After losing the 64.81% support level, Bitcoin’s market dominance is showing clear signs of weakness, opening the door for broader altcoin strength.
Ethereum Leads the Rotation
Ethereum’s move back to its all-time high has been a key driver of this market rotation. Analysts argue that this recovery confirms a growing appetite for smart contract platforms and altcoin exposure. Michael van de Poppe and other market watchers noted that Bitcoin’s dominance has already dropped by around 8% and expect capital to keep flowing into Ethereum and related tokens in the weeks ahead. While near-term volatility may slow the shift, the structural setup continues to favor altcoins as long as dominance trades below the broken support.
Breaking Down Support Levels
From early 2024 to mid-2025, Bitcoin dominance climbed from under 50% to nearly 66%, reflecting heavy concentration of liquidity in BTC. However, RSI readings flashed a bearish divergence — higher highs in dominance but lower highs in RSI — signaling fading momentum.
The break below 64.81% support accelerated selling pressure, with current levels near 58.39% representing a sharp retracement from the highs. With RSI sliding under its midpoint, buying conviction for Bitcoin’s market share looks increasingly fragile.
The Wedge Pattern Outlook
Market technicians, including El Crypto Prof, highlight a long-term ascending broadening wedge spanning over two years. This formation, characterized by higher highs and higher lows with diverging trendlines, often precedes major volatility events.
Bitcoin dominance is now hovering around the wedge’s lower boundary (~59.97%). A clean break lower could unlock downside targets at 50.56% and 48.32%. On the flip side, a rebound might send dominance back toward the 62–64% range, though such a recovery would require renewed inflows into Bitcoin.
Altcoins Start to Shine
The shift in dominance has coincided with increased momentum across altcoins, particularly Ethereum, layer-1 networks, and DeFi projects. Rising transaction activity, stronger on-chain flows, and token-specific rallies suggest investors are broadening exposure beyond Bitcoin.
If this trend persists, the market could be entering a new altcoin cycle where Ethereum and other projects lead growth while Bitcoin takes a relative backseat.
Traders should watch dominance levels closely — a sustained move under the wedge could be the clearest confirmation yet that altcoins are entering a stronger phase.
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