Key Insights
- BTC dominance is continuously rising which might cancel altseason.
- Bitcoin price hovering below the 20-day EMA.
Bitcoin (BTC) price has experienced a correction phase after a bull run. Bitcoin price has been rejected twice from the $107K mark during this bull run. The price showed weakness in the final week of December, plunging below the 20-day EMA.
BTC price has managed to hold the price over the $92K level. This whole scenario suggests that BTC has the potential to trigger another rally.
Rekt Capital’s analysis indicates that the dominance metric for Bitcoin may reach a peak of 71%, indicating changes in the dynamics of the cryptocurrency market through 2025.
According to historical data, Bitcoin has regularly reached the upper limit before seeing steep drops whenever its dominance falls between 58 and 71%.
Can BTC Dominance Top at 71% Again?
Three prior cycles of Bitcoin’s market dominance exhibit strikingly similar behavior, according to historical market data.
Prior to reversals, Bitcoin dominance pushed toward the upper boundary each time it moved into the 58–71% range.
Although there may be some differences in how it approaches the 71% level, the current market structure indicates that this pattern may recur.
According to Rekt Capital’s analysis, a diagonal resistance that is developing on the weekly timeframe may have an impact on this movement.
According to historical data, Bitcoin dominance usually results in upside wicks that extend past these trendlines, which typically range from 1.58% to 4.58%.
Based on this behavior, Bitcoin dominance may reach between 67% and 69% through upside deviations, approaching. However, possibly falls short of the 71% mark even with the declining trendline in place.
These levels are more significant than just technical analysis. Previous cycles show that the subsequent decline tends to be more dramatic the closer Bitcoin’s dominance gets to 71%, creating the conditions for significant movements in the altcoin market.
Can BTC Record a New ATH Post Correction?
When writing, Bitcoin was trading at $96,140.00 which has remained almost neutral over the past 24 hours. The market capitalization was $1.9T and the 24-hour trading volume was around $27.7B.
Based on the technical chart, the BTC price might remain in the correction phase for some more points. The price of Bitcoin has been falling through a descending channel.
Suppose the price triggers a breakout from the channel, a bullish momentum can be anticipated. BTC might perform extremely well after the breakout as it did in November 2024.
Conversely, if the price slips below a support level of $92K, buyers might lose confidence. BTC price below the $92K level could force investors to take profit. Here, profit booking could lead to strong selling pressure.
Bitcoin Price Prediction Amid Growing BTC Dominance
BTC’s rising dominance may signal a potential cancellation of an altcoin season. Historical patterns indicate that when Bitcoin’s dominance approaches the 58–71% range, significant movements, particularly declines in altcoin values, often follow.
The potential for Bitcoin dominance to peak at around 71% could result in a notable impact on the cryptocurrency market dynamics.
As BTC continues to navigate a correction phase, maintaining its price above $92K will be crucial. A breakout from the current descending channel might set the stage for bullish momentum. However, a slip below this support level could prompt profit-taking and heightened selling pressure.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
