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Technical Analysis

BTC dominance at 57%: Is a breakout to 60% next?

Published: Aug 27, 2024
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Potential Scenario: While BTC.D could still rise towards the 60% level, this move is likely to represent the final leg before a potential breakdown from the wedge. Such a breakdown would likely result in a flow of capital from BTC into altcoins, potentially triggering the next altseason.

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Current State

BTC dominance has continued to move within the long-standing rising wedge on the weekly timeframe, which has been developing for over two years. As BTC.D approaches the apex of this formation, the market remains at a critical juncture where a major move is imminent.

Key Observations:

Resistance: The 57% region continues to serve as a significant resistance level. This level aligns with the apex of the rising wedge, marking a historically important area where BTC.D previously formed a lower high before spiking to 72% and then sharply declining to under 40% in 2021.

Market Dynamics: The prolonged consolidation within the wedge and the approaching apex suggest that BTC.D is nearing a decisive moment. The direction of the breakout or breakdown will have significant implications for the broader market, especially for altcoins.

Chart showing Bitcoin dominance percentage over time with a rising wedge pattern approaching a critical resistance level around 60 percent.

Conclusion

BTC dominance remains at a critical point as it approaches the tip of a two-year rising wedge. The 57% resistance level is pivotal, and while a move to 60% is possible, a breakdown from this wedge could lead to a substantial shift in market dynamics, favouring altcoins over BTC.
Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.


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