Key points
- BTC is trading near $111,000 and may consolidate soon, creating room for altcoins to rally.
- Bitcoin dominance has fallen to 55% amid rising demand for altcoins.
BTC stalls around $111,000 as demand for altcoins rises
Bitcoin, the largest cryptocurrency by market capitalization, has been trading near $111,000 over the past two days. This sideways action comes even as many altcoins gain ground: Ether is approaching $4,500 after adding more than 1% to its value.
Bitcoin’s stagnation has coincided with a drop in its dominance metric. Bitcoin dominance has declined from a recent peak of 62% to roughly 55%, indicating that some investors may be reallocating capital from Bitcoin into altcoins.
Bitcoin dominance represents Bitcoin’s market capitalization as a percentage of the total cryptocurrency market capitalization. Traders and portfolio managers use this measure to assess whether Bitcoin is the market’s preferred asset at a given time or whether altcoins offer relatively better opportunities.
In an email to Coinjournal, Sergey Gorev, head of risk at YouHodler, noted that historically BTC price dynamics often trailed broader money-supply trends such as M2. Gorev suggested:
This divergence may be partly explained by a local summer lull as many market participants are on holiday. With the start of the autumn business season, BTC’s price could realign. We view the strengthening of second-tier coins as a more structural, long-term development. First, it reflects profit redistribution from early BTC investors. Second, future crypto reserve formations may favor the most liquid crypto projects, potentially attracting institutional capital worth billions. We believe SOL and XRP could be among the next interesting market stories.
BTC still targeting $113,000 despite lower dominance
On the 4-hour BTC/USD chart, price action has improved compared with the bearish dynamics seen in August. Technical indicators have started to turn more positive: a 4-hour RSI around 59 suggests sellers have lost some control and bullish momentum is returning.
If the recovery continues, BTC could attempt to breach the 4-hour resistance and trendline near $113,487. A decisive break above that level would clear the way for a move toward the next resistance zone around $117,000.
That said, markets remain volatile. A pullback is still possible, and BTC could decline toward near-term support, with a potential low around $107,250 if selling pressure intensifies on Monday.
Overall, the current setup suggests a period of consolidation for Bitcoin that may allow selected altcoins to outperform in the near term. Traders should monitor dominance metrics, on-chain flows, and macro liquidity signals to gauge whether this rotation is temporary or the start of a broader capital reallocation across the crypto market.