Bitcoin Dominance Falls As $6B In New USDT Fuels Altcoin Rotation – Details

After an explosive multi-week rally, Bitcoin has paused its upward momentum at the $105K level, retracing to find support in the $101K–$100K range. This pullback follows a period of aggressive buying that pushed BTC through several key resistance zones, including $90K and $100K, igniting optimism across the crypto market. While the retracement may appear as a slowdown, many analysts view it as a healthy consolidation before another potential leg higher.

Adding fuel to the broader bullish sentiment, CryptoQuant data reveals that over the past 20 days, more than $6 billion in liquidity has entered the market through newly issued USDT. This massive capital injection brings Tether’s total market capitalization to an impressive $150 billion, further highlighting growing investor interest. With such liquidity flowing into the ecosystem, attention now turns to whether Bitcoin can hold its current support zone and continue its push toward all-time highs.

This period of consolidation could be pivotal. If BTC manages to hold above $100K, the bullish trend remains intact. Otherwise, a deeper correction could unfold as the market digests recent gains. All eyes are now on price behavior around this critical range.

Altcoin Rotation Accelerates As Bitcoin Stalls Below All-Time Highs

Bitcoin is currently trading at a critical level, with bulls striving to defend the $100K zone and reclaim $103K to attempt a breakout above the all-time high at $109K. While BTC remains in a structurally bullish position, it has failed to push higher after reaching $105K last week, triggering a retracement that now tests key support levels. Holding the $100K range is essential to avoid a deeper correction and to maintain momentum in what has been one of the strongest rallies of the year.

However, attention is beginning to shift elsewhere in the market. Top analyst Axel Adler shared insights on X, revealing that $6 billion in fresh capital has entered the crypto space over the past 20 days through newly issued USDT, pushing Tether’s total market cap to $150 billion. While this influx of liquidity initially supported Bitcoin’s surge, the trend has recently started to favor altcoins.

As Bitcoin dominance begins to decline, Ethereum and other top altcoins are absorbing a meaningful portion of the capital inflows. This rotation suggests growing investor confidence in higher-risk opportunities, especially as ETH reclaims key levels and altcoins show breakout potential. If Bitcoin continues to consolidate, altseason momentum may accelerate further in the coming weeks.

BTC Testing Resistance As Buyers Defend Key Levels

Bitcoin is currently consolidating just below the $103,600 resistance after a sharp rally that saw the price surge from below $90K to above $105K in less than two weeks. As seen in the daily chart, BTC has repeatedly tested the $103,600 level—an area that acted as a ceiling during the January and March highs. Despite multiple breakout attempts, the price has yet to secure a clean daily close above this level, indicating strong supply pressure.

Support now sits around the $100K–$101K range, which coincides with the psychological round number and the previous breakout zone. So far, bulls have managed to defend this level, showing strength in maintaining the current structure. The 200-day SMA at $91,781 and the 200-day EMA at $87,508 are far below current price levels, confirming Bitcoin’s strong uptrend but also suggesting an overheated short-term setup.

A sustained breakout above $103,600 would open the path toward retesting the all-time high at $109K. However, failure to hold above $100K could trigger a deeper retrace toward lower demand zones. For now, Bitcoin remains in a bullish posture, but the market is awaiting confirmation from volume and price action to validate the next move.

Featured image from Dall-E, chart from TradingView