After I shared the analysis of Bitcoin dominance from the 59% range and mentioned targeting 61.27%, the price actually hit the target before retracing with Bitcoin's drop.
Currently, there are signals supporting a continued drop, especially since dominance has been moving within a downtrend since the peak at 66%.
On the weekly chart, a Death Cross has appeared, which is a bearish signal on a larger timeframe that could push dominance to target 57% as the first objective.
After that, the 54% - 55% zone stands out as an important support and second target, where the MA200 is also located, making it a key watch area.
This crossover happened similarly in 2024, but the dominance back then continued to rise. This time, I see its impact could be the opposite.
But the impact of this scenario on altcoins isn't necessarily positive in a big way, as a drop in dominance might also come with a Bitcoin drop, especially with expectations of USDT dominance rising. The only silver lining might be that altcoins won't face a strong downturn like they usually do.
This indicator, by nature, doesn't respect technical analysis as much compared to other assets, so risk management remains crucial.
Failure point of the analysis: returning and trading above 59.88%.
God knows.
