The Bitcoin Dominance Index has recorded the most bearish volume sessions since February 2021, showing the strongest negative momentum in over four and a half years.
According to the analysis of Master Anandathis breakdown could mark a key turning point in the cryptocurrency cycle, and could foresee a crash from a six-figure price level, he said in a July 20th TradingView post.
In particular, the bear signal has emerged as Bitcoin (BTC) attempts to regain its $120,000 level after it recently hit a record high of over $123,000.
Ananda The analysis shows that Bitcoin dominance is broken from the wedge of the weekly chart’s sharp rise. The move is supported by a large amount of candles, reflecting the heavy sales pressure seen during peaks in 2021 and 2022.
At the same time, Altcoins are gaining momentum, with Ethereum (ETH) and Litecoin (LIT) leading the charge, with Solana (Sol), Cardano (ADA) and XRP poised to follow. As Bitcoin is approaching resistance levels, altcoins are steadily rising, indicating a mature bull market.
Master Ananda The technical indicators also suggest that Bitcoin’s dominance could drop to around 49.16%, adjusting it to the 0.618 Fibonacci retracement level, which is a historically strong support area. Drops to this level indicate a significant capital turnover from Bitcoin to Altcoin.
See the next price level of Bitcoin
This trend Ananda I said, set the stage for a major market shift. Once Bitcoin completes the integration, it is expected to resume its upward trajectory, with targets projected between $134,000 and $136,000.
However, even a sudden correction, or a sharp drop to $100,000, remains a possibility if Bitcoin’s advantage continues to erode faster than expected.
Bitcoin volume appears to be weakening, but social media activity around assets is surged. Especially since it rose to a new all-time high, Bitcoin has seen dramatic spikes in social media chatter, fostering short-term pullback concerns.
According to the sentiment platform singlealmost 43% of all crypto-related mentions this week focus on Bitcoin, marking the highest “social domination” of the year. Analyst Brian Kinlivan noted that the spikes suggest an increase in retail investors FOMO, which is often a signal of market overheating.
Bitcoin price analysis
At the press conference, Bitcoin was trading at $118,052, a decline of about 0.3% in the past 24 hours, but has risen 1.5% over the past week.
Technically, Bitcoin’s 50-day Simple Moving Average (SMA) is $108,727, indicating short-term strength, while the 200-day SMA strengthens the wider uptrend at $89,326. However, a 14-day relative strength index (RSI) of 65.01 suggests that it approaches overbuying territory and increases the risk of pullbacks.
Special images via ShutterStock.