Market Wrap: Bitcoin Price Enters Consolidation As Dominance Plummets to 4-Month Lows

• Bitcoin is ranging after peaking at $123,231, hovering above the 50-day SMA at $117,866
• BTC dominance has plunged to 60%, down 4% in just 9 days, signaling a potential altcoin season.
• With the dollar posting its worst H1 since 1973, investors are turning to crypto and gold.

Bitcoin price has dropped 0.1% in the last 24 hours to trade at $118,942 on a 9.2% surge in trading volume to $53 billion. This decline in price and dwindling volume has resulted in BTC entering a ranging zone. Meanwhile, Bitcoin dominance has taken a hit and dropped to March lows as investors celebrate the potential onset of the long-awaited altcoin season. Let’s dive in.

Bitcoin Dominance Plunges to 60% Amid Altseason Buzz

Bitcoin is now up +59% since its April 2025 low, hitting a record $123,000. Meanwhile, the US Dollar just had its worst start to a year since 1973, falling nearly -11% in 6 months. This is not a coincidence

BTC Vs. DXY Chart by TradingviewIt’s clear that the story for crypto has become much more than just being a decentralized currency. Instead, it has become the hedge (along with gold) against the biggest crisis in the US: Deficit spending. Crypto and gold are telling a clear story: the situation is worsening.

ADVERTISEMENTAfter that huge run-up on Bitcoin price since April, the king of cryptocurrencies finally hit a psychological resistance around $120,000 – $125,000, before entering consolidation. Meanwhile, Bitcoin dominance has crashed 4% in 9 days, and such a significant fall in a short time has left the chart looking extremely oversold

BTC Vs TOTAL3 Chart by TradingviewWith bullish divergence on the RSI, BTC dominance (BTC.D) could get a bit of relief here and a test 63% again. The next part of the story of the cycle will be decided there. Good start for some altcoins, though, but could be a bit of pain next, especially going into the second half of August

If this thesis plays out, the market has roughly a month to wait for the real alt season (final leg). Conversely, if BTC.D continues under 60% things will get interesting.

ADVERTISEMENT## Bitcoin Price Risks Crash As Altcoins Rip

The BTC/USD 4-hour chart shows a recent peak at $123,231, followed by a sharp pullback marked by those red arrows into a consolidation zone

BTC Price is hovering just above the 50-day SMA at $117,866, which offers a solid support level. However, those red flags suggest bears might be pushing prices lower around the supply zone ($120,000). If Bitcoin price busts below $117,000, watch out for $109,433 as it could be the next pit stop.

The RSI at 53.48 is neutral — no wild signals here. The green arrows on the chart show the region where bulls are defending the price, and where BTC could once more bounce if buyers step up

For investors, holding tight and waiting for a volume spike to confirm the next leg up may be the best play. BTC price could test $123,231 again if momentum kicks in.

BTCUSDT Chart by Tradingview## BTC Dominance Falling Could Affect Bitcoin Price

Bitcoin dominance has dropped to 4-month lows, and that’s a curveball. With altcoins flexing their muscles, BTC’s share of the crypto pie has started to shrink, which could pressure the price if the altseason hype steals the spotlight

Historically, when dominance drops this hard, BTC either consolidates or dips while alts pump. Right now, it’s consolidating, but a break below the 50-day SMA could signal a deeper pullback to $109,433 (200-day SMA)

ADVERTISEMENTLooking ahead, the next few days are clutch. If BTC holds above $117,000 with increasing volume, we could see a push toward $123,231 or even a fresh high. But if those red arrows turn into a full-on bear raid, $109,000 is the line in the sand

Also, keep an eye on that RSI, because if it dips below 50, it might be time to brace for a chill period

Long term, the upward trendline and rising SMA suggest bulls aren’t done yet, but short-term, it’s a waiting game.

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