Current market behavior
Bitcoin's dominance in the market is showing a steady uptrend with a clear pattern of higher lows, indicating that investors are moving their funds from altcoins to Bitcoin. This movement causes a significant drop in the value of altcoins.
Interpretation of the graph
The chart shows Bitcoin dominance approaching a critical resistance level between 2600 and 2635. If this resistance level is broken and a successful retest occurs, it will confirm the continuation of the uptrend. The VMC Cipher B indicator below highlights potential divergences, hinting at changes in momentum.
Possible outcomes
If Bitcoin's dominance breaks through the resistance level and continues its uptrend, altcoins could suffer further losses, potentially down another 10% to 15%. This scenario would cement Bitcoin's dominance in the market, leading to a further decline in the relative value of altcoins.
Final Considerations
The market is at an inflection point, with Bitcoin's dominance approaching a key resistance level. The next steps in this index could have a significant impact on the cryptocurrency market as a whole, especially on the performance of altcoins.
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