Bitcoin is currently navigating a critical price zone, holding just above $105,000, while its dominance in the crypto market continues to slip. This shift signals a growing interest in altcoins, as traders and investors look beyond the leading cryptocurrency for new opportunities.
Bitcoin Holds Key Support Amid Volatility
After a sharp correction in April, Bitcoin rebounded strongly in May, but the price action has remained volatile. The cryptocurrency is now trading below $105,000, caught between a significant resistance at $110,000 and a solid support level near $75,000. This range has become a battleground for buyers and sellers, with neither side able to establish clear control .
BTC Dominance Shows Signs of Weakness
Bitcoin’s market dominance—a measure of its share of the total crypto market capitalization—has been on a downward trend. Recent technical analysis reveals a bearish ABC pattern on the 12-hour chart, with dominance dropping from 65.5% to as low as 61.4%. Attempts to recover have stalled below the 61.8% Fibonacci retracement level, indicating persistent selling pressure and a lack of bullish momentum. The continued formation of lower highs and lower lows suggests that capital is rotating into altcoins, as traders seek higher returns outside of Bitcoin .
Weekly Close: A Decisive Moment for Bitcoin
On higher timeframes, Bitcoin is still holding above its previous all-time high, which now acts as a crucial weekly support. A strong bounce from this level could confirm a bullish trend continuation, especially if an inverse Head and Shoulders pattern—often a precursor to upward breakouts—forms and is confirmed. However, if Bitcoin closes the week below this support, a deeper correction could be on the horizon .
Market Outlook: Consolidation and Cautious Optimism
The current market environment is marked by consolidation, with Bitcoin struggling to break above $110,000 despite renewed buying interest near $100,000. Trading volumes and candlestick patterns point to ongoing indecision, as investors weigh macroeconomic factors, institutional inflows, and regulatory developments . Analysts remain cautiously optimistic, with some predicting a bullish breakout if key support levels hold and market sentiment improves.
