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Technical Analysis

BTC dominance at 57%: Will it break out or break down?

Updated: Aug 31, 2024
Published: Aug 14, 2024
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What is Bitcoin: Bitcoin (BTC) is the pioneering cryptocurrency introduced by the enigmatic Satoshi Nakamoto in 2008. It operates on a revolutionary decentralized ledger known as the blockchain and is widely regarded as digital gold due to its finite supply and secure, transparent nature. As the first and most recognized cryptocurrency, Bitcoin remains a cornerstone of the digital asset world.

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BTC dominance (BTC.D)

Current state: BTC dominance has been moving within a rising wedge on the weekly timeframe for over two years, and it is now approaching the tip of this formation. This is a critical juncture where BTC.D could either break out or break down, significantly influencing the broader market.

Key observations

  • Resistance: The wedge's apex coincides with the 57% region, a historically significant level.
  • Potential scenario: While BTC.D might rise to the 60% level in the coming days, this level could mark the peak before a breakdown from the wedge. A breakdown would likely result in a flow of capital from BTC into altcoins, initiating a potential alt season.
Chart showing BTC dominance percentage with key resistance at 60.14%, support at 57.07%, and upward trend within a wedge.

Conclusion

BTC dominance is at a pivotal point as it nears the apex of a two-year rising wedge. The 57% region is a key resistance to watch, with the possibility of a rise to 60% before an eventual breakdown. If BTC.D does break down, it could trigger a significant shift in capital flows towards altcoins, leading to a strong altcoin rally.
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.


Bitcoin's all-time high (ATH) is $75,757. 

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