NewsBTC
21 June 2025
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Bitcoin Dominance Remains Strong, Limiting Altcoin Growth Potential

Analysts indicate that Bitcoin's dominance remains strong, hindering altcoin growth. Currently, Bitcoin's price is approximately $104,000, up 0.4%, following a brief dip to $103,000 as buyers quickly intervened.

The US Federal Reserve maintained interest rates, keeping traders vigilant for potential market impacts.

Bull Market Support Band

The Bull Market Support Band is defined by:

  • 20-week simple moving average
  • 21-week exponential moving average

This band has historically acted as a support zone for Bitcoin's dominance, often resulting in upward movement when tested.

Historical Support Tests

Bitcoin Dominance experienced fluctuations:

  • Dropped from 56% (June 2024) to 54% (July 2024) but regained support
  • Fell from 58% to 56% between December 2024 and January 2025
  • Recent drop to 61% on May 14 after a peak at 65% on May 7, later recovering to 64%

Analyst Warnings And Scenarios

Some analysts warn that Bitcoin dominance could sharply decline before any altcoin season begins. Key points include:

  • A potential double-top pattern in dominance may lead money into altcoins if resistance isn’t cleared
  • If dominance rises, Bitcoin could aim for new record highs

Limitations Of Dominance Metric

Bitcoin dominance measures only its share of the total crypto market cap. It can decrease with:

  • An influx of stablecoins
  • Launching new tokens even without altcoin rallies

Traders should note that moving-average support lines can fail in volatile markets. Reliance on a single technical tool might overlook significant moves influenced by external news or blockchain data.

Currently, Bitcoin's dominance appears stable unless significant changes occur in the near future.