USDC dominance rises as Bitcoin encounters resistance

The USDC dominance is at a critical technical level, while the Bitcoin price stands at $64.500 with a slight gain of 0.5% over the past 24 hours. Analyst rektcapital points to a clear inverse correlation between the two and states that the current chart formation sends an important signal about risk appetite in the market.

USDC is available via Bitvavo and Bybit.

USDC Dominance Retests Previous Highs

According to rektcapital, USDC dominance is currently retesting the peaks from early 2026, which are now functioning as a support level. This blue level coincides with a macro descending trendline that has been visible on the monthly chart for years. The combination of these two factors makes this a highly relevant zone.

If the retest succeeds and USDC dominance manages to stabilise at this level, it opens the door to further upside. In the broader context, that would be a so-called risk-off signal: investors prefer to park their money in stablecoins rather than buying risky assets such as Bitcoin.

Bitcoin Encounters Resistance at February 2026 Levels

At the same time, Bitcoin is struggling to break through a specific resistance zone. That zone corresponds to the lows of February 2026, which now act as a ceiling. This pattern reinforces the inverse correlation that rektcapital points to: as USDC dominance rises, Bitcoin remains stuck.

Whether this is a temporary situation or the start of a further correction depends heavily on how USDC dominance behaves in the coming weeks. A successful retest of the blue support level could mean that the market is not yet ready for a new Bitcoin rally. Earlier, analysts already pointed out /news/bitcoin-price-remains-rangebound-according-to-coinshares-after-end-of-outflow-streak/ that the Bitcoin price would remain within a limited range for the time being, which aligns with this picture.