#Bitcoin dominance has been puzzling many traders lately, but the situation may be more optimistic than it seems. While recent market movements have led to a positive breakout for altcoins, dominance has seen erratic behavior—declining, rebounding beyond expectations, and then dipping again. The root of this confusion lies in a common misconception about how market structures operate.
Trendlines and support levels are not set in stone—they’re subjective tools we create to make sense of price action. Their primary purpose isn’t to predict exact movements but to identify shifts in momentum and structural breaks. Last month, Bitcoin dominance experienced one of its steepest declines in a long time, leading many to anticipate a significant trend reversal. However, the upward retracement last week, which didn’t respect conventional trendlines or high-timeframe supports, left many scratching their heads.
For those familiar with advanced technical analysis, the retracement made perfect sense. Rather than revisiting the expected trendline, Bitcoin dominance returned to a key supply zone—the origin of its prior drop—aligning with concepts like order blocks. This nuanced behavior underscores a vital point: trendlines and support levels are merely visual aids, not absolute truths. Their value lies in highlighting pivotal shifts, not dictating exact movements.
Despite the recent retracement, Bitcoin dominance remains poised for further declines. The apparent "failure" to respect a trendline or higher support is not a sign of invalidation but a reflection of how complex market structures truly are. For seasoned analysts, the pieces of the puzzle are still falling into place. So, avoid getting caught in retail traps or overly rigid interpretations of market structures. The bigger picture still holds plenty of opportunities for those who know where to look.
$BTC 𝐈 𝐚𝐩𝐩𝐫𝐞𝐜𝐢𝐚𝐭𝐞 𝐲𝐨𝐮𝐫 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 🤗😊
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