BTC Dominance Slips Further While Bitcoin Fights to Hold $105K

Bitcoin holds above weekly support near $105K while BTC dominance drops, signaling growing interest in altcoins.

BTC dominance forms a bearish ABC pattern and struggles below 61.8% Fib level, hinting at sustained capital rotation into altcoins.

Bitcoin’s weekly close near $105K is crucial as traders watch for an inverse Head and Shoulders pattern to confirm the next leg up.

After a great correction was had in April, Bitcoin came roaring back in the third week of May. Meanwhile, price action has been volatile, with rejection at previous all-time highs set on the daily chart. Currently, Bitcoin trades below $105,000, holding a fragile position between the major resistance at $110,000 and support near $75,000. This zone has time and again turned out to be a battleground for the bulls and bears.

BTC Dominance Signals Bearish Continuation

Bitcoin dominance (BTC.D) has shown weakness recently. On the 12-hour chart, BTC.D experienced two strong downward moves. The initial drop began at 65.5% and bottomed around 62.1%, indicating strong selling pressure. A bounce followed but halted near 64.2%, just under the 61.8% Fibonacci retracement level. This created a lower high, a clear sign of a bearish continuation.

Moreover, the second drop extended below the previous support at 62.1% and reached down to 61.4%. This move completed a textbook ABC corrective pattern, confirming the ongoing downtrend. Currently, BTC.D consolidates between 61.4% and 61.7%, struggling to reclaim former support levels. Additionally, no bullish reversal patterns have emerged. Price continues forming lower highs and lower lows. The dominance chart remains bearish, suggesting a rising appetite for altcoins as capital rotates.

Bitcoin’s Weekly Close Will Be Key

On higher timeframes, Bitcoin still holds above its prior all-time high. This level now acts as weekly support. A bounce here could confirm a successful retest, supporting the broader bullish trend. However, if Bitcoin closes this week below that key line, a deeper correction may unfold.

Consequently, traders eye a potential inverse Head and Shoulders setup. This pattern often leads to bullish breakouts, offering a foundation for Bitcoin’s next leg up. The next few days are crucial for confirming this structure. Besides, momentum remains mixed. Although buyers regained control near $100,000, the market struggles to break above $110,000. Moreover, volume and candlestick formations point to ongoing consolidation.

The post BTC Dominance Slips Further While Bitcoin Fights to Hold $105K appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.