Bitcoin Dominance Breakdown Hints at Altcoin Strength as $110K Resistance Looms

Bitcoin dominance broke its rising wedge, hinting at weakness and sparking potential altcoin rotation if the trend holds.

Chart patterns now mirror 2021’s double-top, with Bitcoin facing resistance near $110K, a level linked to past major selloffs.

Market wallets quietly added 122,330 BTC, while analysts split on direction—some eye $140K, others warn of coming reversals.

Bitcoin dominance has broken below its rising wedge support, indicating potential momentum loss. This breakdown could open opportunities for altcoins to outperform if dominance keeps dropping.

Rising Wedge Collapse Signals Weakening Bitcoin Control

Bitcoin dominance showed a structured uptrend before collapsing beneath wedge support. The shift in structure suggests changing market behavior from Bitcoin-led momentum to broader rotation across assets.

The wedge formed after a swift decline earlier in May. Dominance rebounded from 62.60% and steadily climbed to nearly 64.60%, forming higher highs. However, a clean breakdown followed on May 27.

The breakdown was sharp and aligned with technical wedge behavior. According to BATMAN, Bitcoin dominance pierced its lower trendline, ending the upward structure. He noted that wedge breakdowns typically signal continued weakness ahead.

His analysis showed dominance dropping from 64.60% to 64.20% by May 29. A projected arrow indicated further downside. He also highlighted the pattern’s final breakdown occurring near the wedge’s last third, which matched classical behavior.

He emphasized that wedge formations often tighten before reversing. The wedge’s failure marked a shift from bullish recovery to bearish potential. According to him, if dominance continues, altcoins could outperform.

Historical Resistance Mirrors 2021 Double Top Formation

Alejandro BTC has presented a comparative analysis with past price structures, particularly referencing Bitcoin’s 2020–2021 cycle. He noted a repeated pattern at high resistance levels.

He highlighted Bitcoin’s current challenge near the $110,000 mark. This range mirrors the former $65,000 zone that triggered a double-top in 2021. According to Alejandro, Bitcoin's price has shown a similar structure, shape, and timing as the previous peaks.

Source: Post on X

Such behavior suggests the market might pause or retrace. Price friction could emerge again if historical resistance levels hold strong. The chart reviewed emphasized how these zones have triggered strong rejections. Additionally, no indicators or volume levels were included to keep focus on technical patterning. This view is that this range could either support a breakout or signal a reversal.

Accumulation, Sweeps, and Diverging Views Among Analysts

Various market analysts on X offered reactions to the recent shifts. Their views reveal different levels of optimism and caution. One analyst observed that wallets holding 100 to 1,000 BTC added 122,330 BTC over six weeks. He viewed this as evidence of silent accumulation. Another mentioned that Bitcoin had recently swept the lows, clearing liquidity zones.

A third projected Bitcoin to reach $140,000 by Q3 2025. He dismissed minor dips, urging patience.

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