Key Takeaways:
Bitcoin dominance printed a false break above resistance on the weekly chart, a pattern that historically precedes capital rotation into altcoins.
Bitcoin dominance fell after printing a false break above overhead resistance on the weekly chart, trapping late buyers and opening the door to capital rotation into altcoins. BTC traded at $73,936 as of 16:00 UTC on May 31, down 0.4% on the session, according to CoinGecko data.
"False breaks above resistance are classic bearish signals for dominance. They trap late buyers, then reverse hard," Trader Tardigrade, a technical analyst, said on X. "When BTC dominance drops, capital flows into altcoins."
On the 4-hour chart, BTC sat at $73,936 inside the Bollinger Bands, with upper resistance at $74,205 and lower support at $73,038. Price traded below both the EMA50 at $74,986 and the EMA200 at $76,613 in a bearish trend structure. The RSI at 45.0 remained neutral, while the MACD showed a bullish golden cross at -344.5, suggesting any bounce into the upper band would likely meet selling that reinforces the dominance breakdown.
The setup aligns with a recurring monthly pattern. Crypto analyst Michaël van de Poppe noted that the final weeks of the month tend to produce downward pressure, while the first weeks historically push prices higher. A brief liquidity sweep early in June is possible before any upward move, he said. If Bitcoin dominance continues to weaken, capital rotation into altcoins could accelerate, setting the stage for a broader altseason.
$564 Million Token Unlock Tests Altcoin Momentum
The altcoin market entering June presents a split picture. Among tokens near all-time high zones, Hyperliquid (HYPE) trades at $57.86, roughly 11% below its $64.80 peak reached on May 26, after a 70% surge from $38.15. The token faces a major test on June 6, when 9.92 million HYPE tokens worth $564.66 million — or 2.54% of released supply — unlock, according to token unlock data. Either spot ETF buying absorbs the new supply, or holders rotate out near the highs.
Stable (STABLE) trades at $0.0376 after forming a cup-and-handle pattern on the 12-hour chart. The token hit an all-time high of $0.0448 on May 14, pulled back to $0.0303, then recovered to $0.0440 by May 25. Clearing $0.0442 on volume would complete the pattern and project a 45.74% measured move to $0.0644.
Rain (RAIN) trades at $0.0143, just 3.5% below its $0.0149 all-time high, after a 106% rally from $0.0072 in three sessions. The token's surge follows Rain Protocol joining the top three prediction markets by volume and a $212 million treasury commitment from Nasdaq-listed Enlivex Therapeutics.
What to Watch in June
The Bitcoin dominance false break gives the technical setup for altseason, but the June 6 HYPE unlock and macro data releases will test whether the rotation has fundamental backing. A daily close above $59.83 for HYPE would confirm the flag breakout; a break below $54.02 would weaken the structure. For Bitcoin, reclaiming $74,200 would signal strength, while a sweep below $73,000 could accelerate the dominance decline and fuel the altcoin rotation.
This article is for informational purposes only and does not constitute investment advice.
