- Bitcoin dominance is at 62.34%, forming a rising wedge pattern.
- A breakout from this wedge could shift dominance and boost altcoins.
- Multiple timeframes show bearish signals, hinting at potential downside.
Bitcoin dominance has surged to 62.34% as of April 1, 2025, marking a pivotal moment on the daily chart. The current formation, a rising wedge pattern, has now tightened significantly, with the apex nearing resolution. Typically associated with bearish reversals, this technical structure implies a potential drop in Bitcoin dominance.
#Bitcoin dominance daily chart:
Rising wedge, leans bearish pic.twitter.com/JvnRAVay8V— Cantonese Cat 🐱🐈 (@cantonmeow) April 1, 2025
The chart, published by analyst Cantonese_Cat, shows Bitcoin’s market cap dominance oscillating between higher lows and relatively flat highs since mid-December 2024, culminating in a compressed wedge that could snap in either direction. With the chart clocking in a modest intraday gain of 0.03%, the signal remains muted, but the tension is palpable.
Daily Price Action Indicates Waning Momentum Near Resistance
Bitcoin dominance opened the day at 62.23%, peaked at 62.36%, and is currently hovering around 62.34%. The wedge’s upper boundary, which has acted as a strong resistance since early March, is aligned slightly below the 63.00% mark. The lower support line, on the other hand, begins around the 52.80% level in December and rises steeply toward current levels.
This ascending wedge shape historically hints at a likely breakdown once price action nears the tip. Adding weight to the structure is a visible price rejection at 63.00%, the highest level reached since October 2023. This repeated inability to break past the ceiling adds pressure to the lower band, where a decisive break could lead to a retracement toward 58.00% or lower.
Weekly Divergence and Monthly Signals Add to Bearish Case
In a comment section clarification, the analyst highlighted the presence of a “weekly bear div,” or bearish divergence, suggesting weakening upside momentum. This indicates that while price (or dominance, in this context) has been pushing slightly higher, relative strength indicators on higher timeframes are not confirming the move. This divergence often precedes downward corrections, particularly when multiple timeframes align.
The analyst doubled down on this view by noting similar signals in the monthly chart. The last time such multi-timeframe confluence occurred was in November 2022, just before Bitcoin’s dominance fell from 46% to 39%. While that event happened under different market conditions, the technical resemblance is hard to ignore.
Altcoin Market Eyes Breakout Amid Potential BTC Dominance Drop
The implications of a dominance drop could be significant across the broader crypto landscape. Should Bitcoin’s market share decline, altcoins could absorb the capital outflows, potentially igniting new rallies across non-BTC assets. The wedge breakdown might trigger a domino effect, with Ethereum, Solana, and newer L1s gaining traction.
The resistance around 63.00% has acted like a stubborn lid for over 40 days, and the more times it’s tested without a breakout, the higher the odds of reversal. Historically, every time BTC dominance dropped more than 2% in under two weeks, altcoin capitalization saw a net increase of 6% to 12%. Hence, a breakdown from this wedge could reset dominance toward 60.00% or lower, reviving alt sentiment.