Bitcoin Nears 70% Dominance, Raising Pressure On Altcoin Market
- BTC dominance rises to 60%, pressuring altcoins as investor capital increasingly flows into Bitcoins market share.
- Analysts forecast either sustained BTC dominance or a shift allowing altcoins to rebound in the upcoming market cycles.
- Bitcoin reaches $70,000 with $100,000 potential if it holds above key resistance levels, signaling further bullish momentum.
The dominance of Bitcoin compared to othe cryptocurrencies in the market has risen above a critical descending trend line which targets to reach 60%. In a recent post on X, Egrag Crypto points out that if this trend continues, BTC may well establish a 70% dominance level thus looming a potential threat to other coins as more investors and liquidity shift to the dominant coin.
This increasing BTC dominance is a cycle pattern where the Bitcoin price rally attracts capital from other cryptocurrencies and hence, weakens the latter. Analysts believe that either Bitcoins dominance will persist and put more pressure on altcoins, or there will be a big flippening where the market share of BTC reduces, and altcoins have a better run.
Bitcoin Breaks Key Resistance
Bitcoins price hit the $70,000 mark to break through the critical resistance level and raising anticipation of a move towards the $100,000 mark. With BTC now trading above the July peak of $70,050, this is seen as a possible signal of a new bullish trend should BTC stay above $70,000.
However, trading above $70,000 alone does not provide further momentum and confirmation to further surge higher. Alan Santana recommends waiting for the breakout of the weekly level, which would mark the first major high on the BTC chart since May and pave the way for further growth.
Source: Chart by Alan Santana
BTCs Turning Point Ahead
In order to know that it is no longer a bull trap, Santana suggests monitoring for weekly and monthly closes above $71,000. Other resistance levels that may be found at $72,000 and $74,000, the breach of these levels may lead to further gains of Bitcoin above $70,000.
This current shift indicates potential turning point for both BTC and other digital currencies with BTCs increasing dominance expected to threaten other small-cap digital currencies. If Bitcoin keeps on surging higher, the rest of the coins may see more losses against BTC as capital chases market share of BTC. At the time of writing, BTC is trading at $71,328, which is 3.95% higher than the previous day.
Source: TradingView
Before the end of the month, the market turns its attention to specific levels that will define Bitcoins further movement. Since the path of BTC is uncertain, the crypto market remains in the limbo, waiting for signals that will determine the further direction of this cycle.
Read more: https://www.tronweekly.com/bitcoin-nears-70-dominance-raising-pressure/
Text source: TronWeekly
