Bitcoin (BTC) Dominance, Support Line 'Crumbles'...Will Altcoins Finally Explode?

▲ Altcoin, Bull Market/AI Generated Image

Bitcoin (BTC) dominance is wavering at its long-term support line, increasing market tension surrounding an altcoin rotation.

According to cryptocurrency media outlet BeInCrypto on July 3 (local time), Bitcoin dominance is testing the bottom of its consolidation range that has persisted since August last year, around the 58.55% level. If this level breaks, the next downside target is suggested to be around 55.5%. The market views this range as a critical turning point for determining entry into altcoin season.

On the weekly chart, the long-term ascending parallel channel that started in late 2022 was already broken in August 2025. Subsequently, dominance consolidated until April 2026 and was pushed back down from the resistance level around 61% in May 2026. Currently, dominance has fallen below the Fibonacci 23.6% retracement level of 59.63%, indicating a strengthening bearish trend.

Downward benchmarks were presented in order: 55.66%, 52.44%, and 49.23%. A prominent trader on X (formerly Twitter) also identified 55% as the trigger zone for altcoin movement, setting a final target of 46.74%. The market sentiment leans towards a break of the support line rather than a short-term rebound.

On the daily chart, the bottom of the horizontal channel between 58% and 60.75% has emerged as a key support level. The uptrend line that started from the September low last year broke in June 2026, and a retest of the resistance line also failed at the end of the same month. If the bottom of the channel is breached, the measured target is around 55.5%, aligning with the weekly Fibonacci 38.2% retracement level of 55.66%. However, the Relative Strength Index (RSI) maintains a neutral trend around 40.

Sentiment indicators also show uncertainty in the transition zone. The Crypto Fear & Greed Index recorded 19, remaining in the extreme fear zone, while the Altcoin Season Index was 45, positioning it midway between Bitcoin season and altcoin season. According to Blockchaincenter, altcoin season is established when 75% of the top 50 coins outperform Bitcoin over 90 days. If the weekly closing price falls below 55.66%, the altcoin rotation scenario gains traction, and if 59.63% is recovered, funds are more likely to remain in Bitcoin.

[Article Key Summary]

-Bitcoin dominance is testing the bottom of its consolidation range, maintained since August last year, around 58.55%.

-A break below 55.66% has been presented as a key signal increasing the possibility of an altcoin rotation.

-A Fear & Greed Index of 19 and an Altcoin Season Index of 45 indicate that the market is still in a confirmation phase rather than a definitive transition.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*