Bitcoin‘s dominance has surged significantly, moving from 54% to 59.48% this month, according to data from Glassnode. This spike mirrors trends observed during the 2020 cycle, where dominance fell below 60% before climbing to 69% in early 2021. Historically, such increases in dominance often signal the start of extended bullish phases. However, Bitcoin’s price has recently dipped by 3.60%, trading at $98,943.
Will Price Drops Affect Altcoin Markets?
Despite Bitcoin’s rising dominance hinting at a potential bullish trend, it has simultaneously exerted pressure on the altcoin sector, resulting in notable declines. Data from CryptoQuant reveals that the Bitcoin Cycle Index (IBCI) has entered a “distribution zone” for the first time in eight months, indicating a cautious market outlook.
Are Market Indicators Signaling a Potential Peak?
Various metrics, including the Puell Multiple and MVRV, indicate that the market may be nearing a cyclical peak. While some indicators remain below critical thresholds, caution is recommended as the NUPL approaches its upper limits. This presents a complicated scenario for market participants.
– Key metrics reflect nearing cyclical peaks.
– Long-term holders are decreasing liquidity on exchanges.
– Active Bitcoin addresses have increased by 2.30% over the past week.
Additionally, a noteworthy rise in large Bitcoin transactions, from 15,620 to 32,320 in just one week, suggests renewed interest from institutional players. However, the technical outlook remains complex, with Bitcoin’s daily RSI at 60 and price volatility high. Market watchers are closely monitoring whether Bitcoin can initiate a new rally in the upcoming weeks.
