Bitcoin is currently trading near $70K, with market dominance around 59.8%, its highest point in over three years. This surge in dominance shows that investors are heavily favoring Bitcoin over altcoins, pushing capital towards the leading cryptocurrency. At these levels, the market sentiment indicates confidence in BTC’s continued upward movement, but caution is still warranted due to the possibility of corrections as Bitcoin approaches this psychological barrier.
If Bitcoin successfully breaks and holds above the $70K mark, we could witness an extended rally. On the flip side, a failure to maintain this level might trigger a market correction, which could have a ripple effect on altcoins. Right now, the Ethereum to Bitcoin ratio is at a low point, hinting at decreased investor interest in altcoins. However, this dynamic can quickly shift if Bitcoin’s dominance starts to decline, opening the door for a potential altcoin season.
In this environment, it's crucial to closely monitor market sentiment and key levels in both BTC and dominant altcoins, while carefully managing risk due to the prevailing volatility.
