Bitcoin Dominance Hits Alarming Levels: Altcoins at Risk as BTC Nears Critical $97K Mark
As Bitcoin (BTC) dominance surges past 60%, market analysts have raised red flags for altcoin investors, warning that BTC’s current strength could spell trouble for smaller cryptocurrencies. Analysts have pointed to Bitcoin’s key resistance at $97,000, suggesting a breakout above this level could revive bullish sentiment across the broader crypto market.
Altcoins Under Pressure as Bitcoin Dominance Spikes
Alex Kuptsikevich, a senior market analyst at FxPro, highlighted that Bitcoin's dominance has surpassed 60%, coinciding with Ethereum's (ETH) market share hitting a five-year low of just 9%. Kuptsikevich described this trend as particularly concerning for altcoin investors, indicating an increasing market shift away from smaller crypto assets and back into Bitcoin as fears mount.
According to Kuptsikevich, the market’s prevailing sentiment of caution has led investors to seek refuge in the relative safety of Bitcoin, reinforcing its dominance. The analyst emphasized that, as Bitcoin strengthens, altcoins generally weaken, suggesting limited upside for these smaller cryptocurrencies unless BTC confidently breaks higher.
Bitcoin Testing Crucial Technical Levels
Bitcoin recently experienced volatility around its 200-day moving average, briefly slipping below the $83,000 mark before staging a quick recovery. Kuptsikevich noted that Bitcoin's repeated tests around this long-term moving average demonstrate investor uncertainty and hesitation, with traders carefully assessing whether the market has established a clear bottom.
The next critical technical hurdle for Bitcoin lies at the 50-day moving average, positioned near the $97,000 level. According to the analyst, reclaiming this level could provide the necessary confirmation that buyers are firmly back in control, potentially sparking a broader market rally and reigniting bullish momentum.
On the other hand, if Bitcoin fails to break the $97,000 resistance, continued market hesitation could deepen investor caution, further suppressing risk appetite and prolonging the current bearish sentiment in altcoins.
Bitcoin Price Update
At the time of writing, Bitcoin is trading at $91,436, reflecting a modest gain of 1.5% over the past 24 hours according to CoinGecko data. The market continues to watch closely as traders await a decisive move in either direction, with the $97,000 level seen as a critical pivot point.
As the cryptocurrency market remains on edge, investors are advised to closely monitor Bitcoin’s movements around these key resistance and support levels, which will likely dictate market sentiment in the coming days.
