Bitcoin Dominance Breaks Down as Altcoins Gain Momentum

• Bitcoin dominance breaks down from a rising wedge, signaling potential gains for altcoins. 
• Despite BTC dominance decline, long-term Bitcoin bullish outlook remains.
• BTC trades at $67,870.44, with a 1.23% decline in 24 hours and a 4.22% decline over the past week.

Bitcoin dominance (BTC.D) has experienced a confirmed downside breakout from a rising wedge pattern on the weekly timeframe chart. This bearish signal indicates a potential shift in market dynamics, favoring altcoins. Renowned analyst Captain Faibik has recently highlighted these trends on the X platform, providing detailed insights into the technical patterns and their implications for the broader market.

Captain Faibik’s analysis focuses on the rising wedge formation that has been developing in the BTC.D chart. A rising wedge is characterized by two upward sloping trend lines that converge, with the price making higher highs and higher lows within this range. This pattern is generally viewed as a bearish signal, suggesting that the upward momentum is weakening.

Recently, the price has broken below the lower trendline of the wedge, confirming a bearish breakout. This development implies that BTC dominance could decline significantly, with Captain Faibik projecting a target of around 45%. Historically, BTC dominance has fluctuated, with notable lows in 2018-2019 and a steady rise since early 2021. The current breakdown could signal a reversal of the strong uptrend observed over the past few years.

The decline in BTC dominance is often interpreted as a bullish sign for altcoins. With BTC.D potentially dropping to 42%, altcoins may gain a larger share of the cryptocurrency market capitalization. Captain Faibik’s bullish stance on altcoins reflects this perspective, as investors might start reallocating their portfolios towards alternative cryptocurrencies in anticipation of their outperformance.

Despite the bearish outlook for BTC dominance, Captain Faibik remains optimistic about Bitcoin’s long-term potential. In another post, he pointed out a textbook ascending triangle pattern on Bitcoin’s monthly timeframe chart. An ascending triangle is typically a bullish pattern, suggesting that a significant upward movement could be on the horizon.

According to Captain Faibik, Bitcoin has recently experienced an upside breakout and retest of this ascending triangle, indicating a strong bullish signal. He projects a long-term target of $170,000 for Bitcoin, underscoring his confidence in the cryptocurrency’s future performance. This bullish projection contrasts with the short-term bearish signal for BTC dominance, highlighting the complex and multifaceted nature of cryptocurrency market dynamics.

As of today, Bitcoin is trading at $67,870.44, with a 24-hour trading volume of $28,108,149,218.63. The price has seen a decline of 1.23% over the past 24 hours and a 4.22% decline over the past week. Bitcoin’s current market cap stands at $1,337,357,089,336, with a circulating supply of 20 million BTC.