- Bitcoin is struggling to hold above $65K as its dominance drops to 63.3%, signaling a potential shift in investor focus toward altcoins.
- This trend could mark the early stages of an altcoin season, especially if Bitcoin remains range-bound and capital begins rotating.
Bitcoin is once again under the microscope as it hovers precariously above the $65,000 support level—an area analysts view as critical to its near-term stability. With BTC dominance dipping to 63.3%, the crypto market could be on the verge of a pivotal shift toward altcoins, potentially marking the early signs of a long-anticipated altcoin season.
Bitcoin Battles $65K: Why It Matters
The $65K level isn’t just another price point—it’s a psychological and technical stronghold. According to recent price patterns, Bitcoin has been consolidating above key support zones, including the CVDD x 2.618 level at $66.3K and a deeper base around $61K. Any significant breakdown below these points may intensify selling pressure, especially as short-term holders continue their profit-taking behavior.
Analysts believe this distribution phase is a sign of market indecision, where short-term holders and miners are offloading their assets, while long-term holders appear to be holding steady but not accumulating. This dynamic has often preceded periods of stagnation—or worse, a deeper correction.
Altcoin Momentum Builds as Bitcoin Dominance Wanes
Bitcoin’s market dominance has historically been a leading indicator for altcoin performance. At 63.3%, BTC.D has pulled back slightly after trending upward since mid-March. Historically, the 64% zone has acted as a resistance barrier, and repeated rejection here could open the floodgates for capital rotation into altcoins.
COINOTAG’s recent analysis reinforces this idea, noting that “the shift towards altcoins may indicate a pivotal moment for crypto investors as they rebalance portfolios.” As capital begins to diversify beyond Bitcoin, altcoins could see increased volume, particularly if Bitcoin continues to range between $61K and $66K.
A Cautious Yet Hopeful Market
While it’s too early to call a full-blown altseason, the current setup hints that we may be in its early stages—especially if BTC continues to consolidate and dominance keeps slipping. October, historically a strong month for altcoins, could bring further clarity.
