BTC’s market control eases as capital rotation hints at renewed interest in major altcoins
Bitcoin’s dominance in the cryptocurrency market has slipped from 63% to around 60%, signaling a potential shift in market sentiment as traders begin reallocating capital toward altcoins after weeks of Bitcoin-led momentum.
After rallying sharply through early October, BTC dominance reached resistance near the 63% zone, aligning with a historical supply region that has repeatedly capped Bitcoin’s market share since 2021. Technical charts show a rejection from that key resistance, leading to a mild correction while still maintaining a long-term uptrend structure.
“This pullback is natural after such a strong run,” noted one of BITX market analyst. “Bitcoin has outperformed the broader market since midyear, and traders are now rebalancing portfolios into altcoins that have lagged behind.”
Key support levels and trend structure
The dominance chart highlights a rising trendline extending from early 2023, which remains intact despite the current retracement. The green zone near 57% acts as a major support, where buyers historically stepped in to defend Bitcoin’s market control.
As long as BTC dominance stays above this support, analysts expect the macro bullish structure to hold, suggesting Bitcoin could continue leading market cycles — though short-term dips may favor altcoin rebounds.
“A dominance range between 57% and 63% typically indicates a balanced environment,” explained BITX strategist. “When Bitcoin consolidates, altcoins usually gain temporary strength before BTC resumes its broader trend.”
The move from 63% to 60% reflects healthy market rotation rather than structural weakness. Traders are closely monitoring whether the dominance metric can maintain support above 58–59%, a region that often signals risk appetite returning to smaller-cap assets.
With Bitcoin’s price stabilizing after recent volatility, altcoins may experience a short-term relief rally, though the broader trend continues to favor Bitcoin as the primary driver of market liquidity and sentiment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.