Bitcoin Dominance Nears 61% Breakout, Altcoin Struggles Could Worsen

Bitcoin's price is dropping, but the decline is even steeper for alternative cryptocurrencies. The metric known as bitcoin dominance, which tracks BTC's portion of the overall crypto market, has risen to 60.98% — the highest level recorded since May 2026.

Bitcoin Dominance Tests Resistance That Has Held for Over a Year

This level is close to a critical threshold. Should dominance push past 61%, holders of altcoins may see more weakness ahead.

Since August 2025, bitcoin dominance has found it difficult to hold above 60.5%. Three prior efforts to regain that mark were unsuccessful.

The technical setup is now shifting.

The weekly Supertrend indicator has flashed a bullish signal for the first time since February 2025. At the same time, dominance has exited a multi-month triangle formation.

A weekly close exceeding 61% would reinforce the positive outlook and could send dominance toward 62%.

Yet there is a caveat. On the daily chart, dominance has reached the upper boundary of its ascending channel, a zone that has historically capped upward moves.

If dominance is turned back, a pullback toward 60% is possible, which would offer altcoins some breathing room.

Altcoins May Be Waiting Even Longer for a Recovery

Data suggests altcoin holders are already under pressure.

CoinMarketCap's Altcoin Season Index currently sits at 39. This reading indicates that roughly one-third of the top 50 cryptocurrencies have beaten bitcoin's performance over a 90-day window.

A reading of 75 is required to declare an official altcoin season.

The 30-day index paints a bleaker picture, having dropped to 24 — firmly in bitcoin season territory.

In addition, recent buyers of altcoins are now selling at a loss.

Trader cyrilXBT flagged the dynamic on Wednesday: despite bitcoin falling 2%, its market share continued to climb.

That implies altcoins recorded even steeper declines.

The next move is pivotal for traders. A sustained break above 61% could prolong the pain for altcoins. A rejection, followed by a slide below 60%, would improve their recovery prospects.

For now, the market continues to favor bitcoin — even as bitcoin itself loses ground.