Bitcoin Dominance May Have Hit Its Cycle High – What Comes Next For Alts?

Bitcoin is under renewed selling pressure after days of consolidating just below its $112,000 all-time high. The market, rattled by macroeconomic uncertainty and rising volatility, has forced BTC into a cooling phase around the $103K–$106K range. While bulls are still in control of the broader trend, the current pullback reflects growing caution among investors amid global financial headwinds.

One of the key factors shaping sentiment is the rise in US Treasury yields, which continues to signal systemic stress and tighter liquidity. These conditions have historically created a mixed environment for risk assets like Bitcoin and altcoins, often triggering temporary corrections before the next impulse move.

Top analyst Ted Pillows shared a compelling take, suggesting that Bitcoin dominance may have already peaked for this cycle. If true, this could mark the beginning of capital rotation into altcoins — a signal that altseason might be around the corner. With Ethereum and other top assets holding key levels, the market could be entering a transition phase. BTC may stabilize in the short term, but all eyes are now on whether altcoins begin to outperform and shift momentum across the broader crypto space.

Bitcoin Dominance In Question Amid Global Tensions

Bitcoin is facing a critical moment after retracing more than 7% from its recent all-time high of $112,000. As the price consolidates around the $103,000–$105,000 range, traders and analysts are watching closely to see whether this is a healthy pullback or the beginning of a broader shift in market structure. The retracement comes amid rising macroeconomic tensions, with the ongoing US–China tariff standoff introducing a new wave of uncertainty that’s rippling through global markets.

Despite short-term weakness, Bitcoin has been the undisputed leader of this cycle. Since its breakout in 2021, BTC has consistently outperformed the broader crypto market, showing resilience in the face of economic volatility and systemic financial risk. Altcoins, on the other hand, have struggled to regain their 2021 highs, with many still down significantly from their previous peaks.

However, not everyone believes Bitcoin will continue to dominate. Pillows recently suggested that BTC dominance has likely peaked for this cycle. While he cautions that “nothing goes down in a straight line,” a falling BTC dominance is historically one of the strongest signals for the beginning of an altseason. If this trend holds, it could mark a turning point for altcoins to reclaim market share and outperform in the coming months.

Still, the transition won’t be immediate. Dominance trends can take time to develop, and Bitcoin’s price action remains the key driver of overall market direction. For now, Bitcoin is testing support, and the broader market is holding its breath, watching closely for signs of a new phase in this bull cycle.

BTC Price Analysis: Approaching Make-or-Break Support

Bitcoin is currently trading at $103,764, hovering just above the key support level at $103,600. The 4-hour chart shows clear downward momentum after BTC failed to break through the $112K all-time high last week. Since then, price has declined steadily, with lower highs and lower lows forming a short-term bearish structure.

BTC is now testing the confluence of the horizontal support at $103,600 and the 200-period simple moving average (SMA), currently positioned around $102,600. This zone is critical for bulls to defend. A sustained break below it could open the door to deeper retracements, possibly toward the $100K psychological level or even the $98K–$99K region.

On the other hand, holding this support could lead to a rebound. Short-term moving averages (34 EMA and 50 SMA) have started to curl down, suggesting pressure remains, but oversold conditions could attract dip buyers if volume picks up.

For now, Bitcoin’s bullish structure is intact on higher timeframes, but the short-term trend hinges on the defense of this demand zone. The coming sessions will be crucial in determining whether BTC stabilizes for another leg up or breaks down to search for lower support.

Featured image from Dall-E, chart from TradingView