Why does Bitcoin withstand while altcoins crumble? An analysis of capital rotation in 2026

The Divergence Phenomenon in the Crypto Market

In the last 48 hours, Bitcoin has remained relatively stable around $91.58K with an increase of +0.87%, while alternative assets experience significantly deeper declines. Ethereum, for example, trades near $3.14K, XRP has retreated to $2.06, and Chainlink is at $13.31. This performance gap is not coincidental but evidence of a deliberate shift in investment preferences.

Large-cap altcoins have suffered losses between 8-15% in the same period where Bitcoin only declines by 3-4%. This asymmetry reflects something deeper than an ordinary correction: it indicates a conscious reallocation of capital toward assets of lower relative risk.

Behind the Numbers: Liquidity Flow Analysis

What transaction volume data reveal is crucial. Spot trading volumes in Bitcoin significantly surpass those of the main altcoins, with an advantage of 20-25%. This higher liquidity acts as a natural buffer against selling pressure, allowing Bitcoin to absorb large transactions without sharp price drops.

Conversely, the order book depth in altcoins has contracted by more than 30% compared to a week ago. When depth decreases, smaller sell orders generate disproportionate movements in prices. Traders are selling during short-term recoveries rather than accumulating positions, a clear defensive behavior.

For those using a resistance calculator to evaluate these levels, they will notice that Bitcoin remains in more solid structures while altcoins have failed to recover previously important technical barriers.

Bitcoin Dominance: A Silent Indicator of Structural Change

The Bitcoin dominance indicator shows a steady rise toward 59%, with a series of increasingly higher lows and highs. This upward pattern is not temporary but evidence of a broader market reconfiguration.

What’s significant is that dominance has surpassed and consolidated above the $56-57% zone, transforming what was previously resistance into a new support level. Technically, this confirms that the bullish trend for Bitcoin could continue as long as it stays above these levels.

The participation of “Others” (all altcoins together) has fallen to around 28%, the lowest level in several months. This indicates that altcoins are losing market share, especially during corrections, something that historically coincides with periods of selective consolidation rather than broad expansion.

Implications for Traders and Risk Managers

If Bitcoin dominance stabilizes between 59-62%, we can expect Bitcoin to continue absorbing funds while altcoins remain under pressure. This environment favors two approaches: focused positions on Bitcoin or a broader defensive stance.

Attempting to anticipate recoveries in altcoins based on technical oversold conditions becomes a high-risk strategy. Unless dominance shows rejection and retreats below 56-57%, rebounds in altcoins will likely face sustained selling pressure.

In summary, the current market prioritizes liquidity and capital preservation over exposure to more volatile assets. As long as Bitcoin demonstrates this relative strength, defensive or BTC-focused strategies offer better risk-reward profiles than chasing technical setups in assets lacking the inflow needed to reverse their trend.