bullish

Guarantee

Bitcoin

when

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin dominance is nearing 57% of the total market share, signaling bullish market sentiment.</li> 
 <li>However, the lack of new investor interest could hinder the upward trajectory.</li> 
</ul>  
<p>Bitcoin’s [BTC] dominance in the cryptocurrency market is soaring, reaching almost 57% of the total market share against altcoins. This surge is in sync with BTC’s renewed momentum, as it has recently surpassed the $64K mark, currently trading at $64,400. </p> 
<p>The significance of this price range is its resemblance to the late August rally, when bearish pressure caused BTC to plummet below $55K in just two weeks. Now, this level represents a crucial battleground that could determine BTC’s next significant move.</p> 
<h2 id="bitcoin-dominance-doesn-t-guarantee-a-rebound">Bitcoin Dominance Doesn’t Guarantee a Rebound</h2> 
<p>Bitcoin dominance essentially illustrates BTC’s proportion in the overall cryptocurrency market. As the first and most sizable cryptocurrency by market cap, BTC’s dominance is a crucial indicator of market sentiment that traders closely monitor.</p> 
<p>The current outlook is positive, with many stakeholders moving out of net loss positions. However, these investors must refrain from offloading their positions for a breakout to materialize.</p> 
<p>Historically, a surge in Bitcoin deposits to exchanges has coincided with daily price lows. If traders do not perceive the current price as a “dip,” the expected rise to $66K might falter.</p> 
<p>What’s more concerning is the lack of new investors entering the market despite high Bitcoin dominance. This absence of fresh capital could prevent BTC from reaching its next price target.</p> 
<p>If this trend doesn’t change in the next day or two, Bitcoin might be facing a correction that could pull it back to $62K.</p> 
<h2 id="a-retracement-might-be-necessary">A Retracement Might Be Necessary</h2> 
<p>In its attempt to replicate the late July rally when BTC closed near $66K, Bitcoin dominance has stumbled three times, primarily due to speculative traders.</p> 
<p>For example, during the late September cycle, when BTC almost reached its price target, excessive shorting led to a pullback as long positions were forced to sell their holdings.</p> 
<p>Currently, a majority of future traders are betting on a rebound, as indicated by the spike in the red zone. However, caution is advised, as spot market traders do not share the same bullish outlook for BTC as those in the derivatives market.</p> 
<p>This divergence might be exploited by short sellers, who are likely to increase their positions, capitalizing on the lack of fresh capital entering the market.</p> 
<p>Therefore, alongside high Bitcoin dominance, converting the $64K level into support is crucial. This can occur if new buyers view the current price as an opportunity to buy the dip.</p> 
<p>On the other hand, if they hesitate, a retracement to the $62K–$64K range might be necessary for a healthy shakeout before BTC can break above $66K.</p>

Bitcoin Dominance Fails to Ensure Breakthrough Above $66K Mark

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CoinEagle.com

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