Bitcoin Dominance Slides to 58% and May Signal Rising Momentum for Ethereum, Altcoins

• Bitcoin dominance has broken key support at 64.81%, confirming weakening market share for Bitcoin.

• Ethereum reclaimed its all-time high, supporting increased momentum for altcoins and broader market rotation.

• Analysts identify a wedge pattern with downside targets of 50.56% and 48.32% if the breakdown sustains.

Bitcoin dominance drops to ~58% amid RSI divergence and wedge breakdown; read market impacts and what traders should watch next. Start positioning now.

What is driving the recent drop in Bitcoin dominance?

Bitcoin dominance has declined sharply after failing at key resistance, falling from near 66% to around 58.39%. Technical factors — a bearish RSI divergence and a confirmed break below 64.81% support — combined with renewed capital flows into Ethereum and altcoins explain the faster decline in Bitcoin’s market share.

How is Ethereum’s all-time high influencing market rotation?

Ethereum reclaiming its all-time high is a leading signal that capital is rotating out of Bitcoin and into smart-contract tokens. Analysts, including Michael van de Poppe (plain text source), reported an ~8% drop in dominance and expect altcoins to follow Ethereum’s momentum in the coming weeks. Short-term volatility could pause the rotation, but the structural bias favors altcoin strength while dominance remains below the broken support.

Breakdown From Key Support Levels

Dominance rose from below 50% in early 2024 to nearly 66% by mid-2025, reflecting strong capital concentration in Bitcoin. That trend reversed when the Relative Strength Index (RSI) showed lower highs while dominance made higher highs — a classic bearish divergence that signaled weakening momentum.

When dominance fell below the 64.81% support level, selling accelerated and bearish volume increased. Current readings near 58.39% represent a significant retracement from recent peaks, and the RSI moving below the midline reinforces a loss of buying conviction for Bitcoin’s market share.

What does the wedge pattern mean for future dominance levels?

On the two-week timeframe, analysts including El Crypto Prof (plain text source) identified an ascending broadening wedge spanning more than two years. The pattern features higher highs and higher lows with diverging trendlines, which often precede elevated volatility and trend exhaustion.

Dominance is testing the wedge’s lower boundary (near 59.97%). A decisive break lower would open measured downside targets at 50.56% and 48.32% cited by analysts. Conversely, a rebound could trigger a retest of the 62–64% zone, though that scenario requires renewed buying volume favoring Bitcoin.

How are altcoins responding to the dominance shift?

Early signs show altcoins gaining market share as investors reallocate toward Ethereum and select layer‑1 and DeFi tokens. Transaction activity, on‑chain flows, and renewed token-specific rallies support a transition from Bitcoin-led breadth to a broader market participation.

Frequently Asked Questions

What are the technical indicators signaling for Bitcoin dominance?

RSI divergence and a break below 64.81% support signal weakening momentum for Bitcoin dominance. Analysts point to increased bearish volume and wedge pattern risk that could extend losses toward 50.56% and 48.32% if the breakdown holds.

Should traders shift to altcoins now?

Traders should consider position-sizing and risk tolerance; the rotation favors altcoins but volatility remains high. Use stop management and monitor dominance levels, RSI, and volume for confirmation before scaling exposure to altcoins.

Key Takeaways

• Support broken: Bitcoin dominance fell below 64.81%, confirming a bearish shift.
• Altcoin rotation: Ethereum’s all-time high strengthens the case for altcoins gaining market share.
• Actionable targets: Analysts mark 50.56% and 48.32% as downside targets if the wedge breakdown continues.

Conclusion

Bitcoin dominance is signaling a significant shift in market breadth: a break below 64.81% and RSI divergence have allowed Ethereum and altcoins to reclaim momentum. Traders should watch dominance levels, on‑chain flows, and volume for confirmation while managing risk as the market rotates into the next phase. Publication: COINOTAG — Updated 2025-08-24.