Bitcoin Dominance Breaks Key Channel as Altcoins Hold Ground

BTC dominance broke its rising channel, opening room toward 57%–58% as alts show early strength.

Despite the drop, Bitcoin kept most inflows, with altcoin funds seeing deeper outflows and limited rotation signs.

Privacy coins led gains, while broader alts stayed weak, keeping the market in Bitcoin Season below rotation levels.

Bitcoin dominance weakened on Friday after a firm channel break that shifted short-term structure and redirected attention toward altcoin performance. Ash Crypto said Bitcoin dominance “dropped hard today” and noted that the channel “is now broken,” adding that alts “are holding strong” as momentum builds. The daily reading placed BTC.D near 58.88%, down 0.55 points over 24 hours, while the CMC Altcoin Season Index held at 32/100, keeping the market in Bitcoin Season.

Rising Structure Breaks as Market Rotates

BTC dominance is near 59.30% with a 1.47% drop. The structure featured a rising channel that guided dominance from late September through November, lifting it from 57.2% toward recent highs near 61%

Source: Ash Crypto on X

However, the trend shifted when dominance closed firmly below the lower boundary of that channel. This break pointed toward a potential move back to the 57%–58% region.

This breakdown introduced renewed focus on the long-term descending resistance near 64%–65%, which remained untouched. The next notable support sat at 57.17%, creating a defined lower target if weakness continues. This shift linked directly to early signs of capital rotation toward select altcoins.

Market Share Data Shows Bitcoin Holding Majority

The broader market retained a defensive tone despite this structural drop. Altcoins represented only 29.42% of total crypto value, and the Altcoin Season Index rose 6.67% over the month but stayed firmly below rotation thresholds. However, Bitcoin kept most inflows even during volatility, supported by ETF liquidity and institutional participation.

This positioning aligned with seven-day ETF outflows of $1.42 billion, while altcoin-linked funds recorded deeper outflows near $3.9 billion. Bitcoin dominance still rose 0.03 points over the month, showing how major participants leaned toward its liquidity during recent swings. This defensive stance set the backdrop for understanding the limited breadth in altcoin strength.

Privacy Coins Lead Sector-Specific Rallies

Privacy tokens created the only strong pockets of performance. Dash surged 25% and Zcash gained 32% as traders reacted to regulatory uncertainty and ongoing technical changes. These moves stood apart from broader altcoin weakness driven by the FTX Bankruptcy Estate and U.S. Strategic Crypto Reserve narratives, both down 6% over the week.

This divergence showed how traders targeted high-volatility niches while large-cap altcoins faced pressure. However, Bitcoin still anchored market flows due to stronger liquidity and deeper institutional alignment, keeping rotation constrained until broader metrics change above key levels such as the 45/100 Altcoin Season Index mark.

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