Bitcoin dominance signals overheating – Which ‘dip’ should you target?

Two days ago, Bitcoin [BTC] dominance surged to an impressive 57%, following a daily gain of over 5% that pushed BTC above the $66K mark – a level it hadn’t breached in more than 150 days.

Now trading at $67,350, Bitcoin has risen over 10% in just one week. This rapid ascent has led analysts at AMBCrypto to speculate whether the market is nearing an overextension.

If this is the case, a pullback to a local low could occur before BTC attempts to retest its all-time high.

High bitcoin dominance signals overheating
In the past week, daily gains exceeding 2% have helped Bitcoin recover from its $60K slump, confirming the level as a new support.

Additionally, the surge was reinforced by a rising RSI, indicating strong momentum. Trade volume also spiked to a new local high, signaling increased support from retail investors.

As a result, Bitcoin dominance also climbed to a new high. However, this bullish momentum has pushed BTC into “greed” territory, hinting at potential signs of overheating in the market

Historically, a shift into greed often coincides with the phase in a cycle where Bitcoin hits a market top, frequently leading to a subsequent price crash.

At this stage, many traders exit, doubling down on their gains, while new buyers hesitate, fearing the inevitable correction.

Therefore, these traders usually wait for a dip-buying opportunity, capitalizing on the market bottom when Bitcoin dominance resurges.

Currently, with Bitcoin dominance at a new high and other signals pointing to a market top, Bitcoin may be primed for a correction.

This correction could shake out weaker hands, leaving fresh buyers to take advantage of a potential dip.

Bitcoin could retrace to a local low
Bitcoin previously faced rejection at $64K, which must be converted into support to signal the potential dip. This scenario unfolds when new interest perceives this price range as an attractive entry point.

#BTC☀
#BearishPhase


$BTC
$ETH

who is the winner???

current prediction

Bitcoin: Why $67400 has become an important level for BTC

Over the past week, Bitcoin [BTC] has experienced a strong upswing from a low of $58k to $67k, hiking by 14.57%.

This surge has rejuvenated market optimism over the long-awaited Uptober. As such, various market players, especially analysts, have started to dream of a new ATH.

One of these analysts is the popular crypto analyst Ali Martinez, who suggested that the king coin was on the verge of hitting an ATH.

Bitcoin’s new ATH, when?
In his analysis, Martinez pointed out that BTC can reach a new high if it remains above $67400.

According to him, a breakout above $67400 will strengthen Bitcoin to the next local high of around $86600. Based on this assumption, the crypto will see a 28.49% upsurge.

During the previous bull run, BTC saw a sustained rise from $38505 to the recurrent ATH of $73794. This marked a 91.65% increase between January and March 2024.

Therefore, compared with the previous cycle, the argument is quite plausible.

What Bitcoin’s charts says
While Martinez sees a potential upsurge to a record high, the question is does other market fundamentals support the case

The first indicator to consider is the fund flow ratio, which measures the capital inflow into an asset. According to CryptoQuant, the Fund flow ratio has surged from a low of 0.04 to 0.13 at press time.

A rise in the Fund flow ratio suggests that more money is flowing into BTC, implying a rise in buying pressure.

Finally, Bitcoin’s active addresses have been rising over the past week from 567.9k to 753k at press time.

This shows higher engagement with the network, which implies that the recent uptrend is supported by strong fundamentals and not mere market speculation.

What’s next for BTC?
As of this writing, BTC was trading at $67548. Thus, as observed above, BTC is currently enjoying a strong upward momentum and positive market sentiment.

#BTC☀
#FearNGreed

Bitcoin: Whales, retailers take different approaches as BTC struggles

Bitcoin [BTC] has experienced positive price trends over the last few days but hasn’t stopped retail investors from selling off their holdings.

Despite the price increase, retail traders continue offloading their BTC, while institutional investors have been quietly accumulating.

Bitcoin whales continue accumulating
Recent data from CryptoQuant revealed that while retail investors have been selling, institutional wallets have been accumulating Bitcoin.

Over the past 30 days, institutional wallets have amassed over 67,000 BTC. The accumulation brought their total holdings to over 3.9 million BTC.

The sell-off by retail investors is likely due to the sideways price movement that Bitcoin experienced in previous weeks before the recent uptrend.

These price stagnations often lead retail investors to lose confidence and sell their holdings, anticipating buying back at higher prices once market sentiment improves.

On the other hand, institutional players accumulating during the downturn are expected to distribute their BTC when the price increases.

Ongoing selling pressure
AMBCrypto’s analysis of the Bitcoin Chaikin Money Flow (CMF) showed that selling pressure continued to dominate despite the recent price rise.

As of this writing, the CMF stood at around -0.04, indicating slightly more selling pressure than buying pressure

A negative CMF suggests that Bitcoin is still being distributed, with more sellers than buyers in the market.

When the CMF is below zero, it signals that selling activity is stronger than buying, which can create downward pressure on the price.

If the CMF moves back into positive territory, it would confirm that buying pressure is increasing, potentially supporting further price growth.

However, if the CMF remains negative or falls further, it could indicate a weakening buyer interest, leading to possible price consolidation or even a pullback in the coming days.

#BTC☀
#Barish

Why is Bitcoin going up today? This historical trend could be key

On the 14th of October, Bitcoin [BTC] rallied 5% and retested $66K as analysts linked the upswing to upcoming U.S. elections.

Quinn Thompson, founder of crypto hedge fund Lekker Capital, termed the latest rally a “Trump bump,” citing increasing odds of Trump winning the U.S. elections.

But Kamala Harris’s recent pledge to support a crypto regulatory framework has made some pundits believe that the 2024 elections could be a win-win for the industry.

U.S. election factor
On its part, crypto trading firm QCP Capital believed the rally was part of historical trends ahead of the U.S. elections.

“The timing ahead of the U.S. elections mirrors historical patterns. In both 2016 and 2020, #BTC surged just three weeks before #Election2024 Day.”

In 2016, BTC hiked from $600 three weeks before the U.S. elections and doubled by January 2017. Similarly, BTC exploded from $11K before the 2020 elections and hit $42K by January 2021.

Will the trend repeat in 2024? AMBCrypto asked Bitget Research’s chief analyst, Ryan Lee, what his thoughts were,

Lee said that BTC has remained resilient despite the strengthening U.S. dollar. This could signal a bullish phase for the asset in the medium term.

He projected BTC could remain range-bound or explode above $70K by the end of October.

“Volatility in the crypto market will likely increase ahead of key events — the next November Fed meeting and the US elections at the same time. BTC price fluctuations may range from $58,000 to $69,000.”

That said, the demand for BTC has increased in the past 30 days, hitting levels last seen in April. This was a complete turnaround from the low demand in Q2/Q3, 2024.

However, renowned analyst Peter Brandt believed a market structure shift could happen only if BTC surged above $68.2K.

At press time, BTC was valued at $65.6K, about 12% below its ATH of $73.7K.

#BTC☀

Altcoin season soon? Here’s what Bitcoin needs to do to kick off the alt rally

As Bitcoin [BTC] approaches a market top, many altcoins are poised for a surge, driven primarily by investors seeking to diversify their portfolios and mitigate risk.

As a result, the crypto market is buzzing with the prospect of an impending altcoin season, where numerous coins are anticipated to capitalize on the recent momentum and, in many instances, outperform BTC.

Altcoin season may have to wait a little longer
Theoretically, an altcoin season begins when 37 of the top 50 altcoins outperform Bitcoin over a 90-day average.

Currently, the chart shows 17 of the top 50 altcoins surpass Bitcoin, with SUI leading the way with an impressive 155% surge. Typically, altcoins move in tandem with Bitcoin, reaching local highs when the sentiment around BTC is bullish.

This occurs as investor confidence in Bitcoin often spills over into the altcoin market, encouraging traders to seek higher returns in these alternative assets.

Historically, halving years have marked significant beginnings for the re-accumulation phase for Bitcoin, typically followed by a blow-off top.

However, a solid accumulation is yet to materialize, which will be essential for establishing the prospects of an altcoin season. Therefore, unless BTC retests its ATH, altcoins may only achieve short-term gains.

A lot hinges on Bitcoin
Contrary to popular belief, AMBCrypto suggests that Bitcoin may be poised for a price correction, likely pulling it back below $64K unless this level flips into support.

This correction would represent the fourth potential retracement since BTC last approached the $66K ceiling. Only after breaking this barrier will the possibility of reaching an all-time high materialize

Therefore, it’s crucial to closely monitor altcoins during this potential downturn. If most altcoins ride the wave with significant gains, the chances of entering an altcoin season by the end of the next cycle may increase.

#altsesaon
#BTC☀
#MemeCoinTrending

Is Bitcoin’s october beginning, or will today’s BTC rally end with more of the same?

Bitcoin rallied to $66,300 on Oct. 14, but definitive proof of a structural trend change remains in question.

Bitcoin price opened the week with a strong push to $66,300, but will bulls be able to maintain the current momentum?

For the past seven months, a majority of Bitcoin
BTC
tickers down
$66,263
price rallies have been capped at overhead resistance, most recently the $65,000–$66,000 level where the price has yet to secure a daily close.

Oct. 14’s price rally puts Bitcoin in a similar scenario where the descending channel’s trendline was briefly breached, but it’s yet to be determined if BTC will close the day firmly above the channel resistance.

Similar to previous rallies, the price break out was partially driven by the futures markets, and the activity is easy to pinpoint by the surge in the funding rate and open interest accompanying BTC’s pop to $66,300 as short traders became forced buyers.

#BTC
#BTCBreaks66K
#BTC☀
#BullRunAhead
#Market_Update

Cardano approaches $0.40: Can ADA rally past this level?

Cardano [ADA] is capturing the attention of investors, as both crowd and smart money sentiment reflect a strong bullish outlook. At press time, ADA was trading at $0.3564, up 0.94% over the past day.

With the $0.40 resistance looming, traders are eager to know whether Cardano has what it takes to break through this key level and start a potential bullish rally.

ADA’s technical analysis offers mixed signals. The RSI, at 45.84 at press time, showed that ADA was in a neutral zone, neither overbought nor oversold.

Therefore, there is room for upward movement if buying pressure intensifies.

Additionally, the MACD is nearing a zero-cross, indicating a possible shift in momentum.

However, this could also signal consolidation if buyers fail to step in, leaving ADA in a cautious state as it hovers below resistance

In terms of on-chain data, Cardano was showing modest but positive signals. Net network growth was up 0.09%, and 1.40% of ADA holders were in profit, as indicated by the “in the money” metric.

Additionally, ADA’s concentration metric was steady, with no significant changes in large holder positions.

However, large transactions have decreased slightly by 0.41%, signaling that institutional investors were taking a cautious approach.

Consequently, while the fundamentals suggested strength, they are not pointing to a major rally yet.

Cardano’s indicators show potential for a breakout, but the market is not there yet.

While the technical and on-chain data are pointing in the right direction, the cautious rise in Open Interest and low liquidation figures suggest that Cardano may need more bullish momentum to cross the $0.40 resistance.

#cardano #ada
$ADA $BTC

Is DOGS ready for a bullish recovery rally?

DOGS’s latest performance suggests that there was significant accumulation at its recent bottom range.

However, it will require more liquidity inflows to sustain more bullish momentum, a mission that may not be so difficult considering its latest popularity.

Recent on-chain data suggests that it could be in a position to maintain that status. For example, DOGS is currently the leading token on TON in terms of ownership, with 5.6 million holders.

The total addresses with balances peaked at 6.36 million addresses on the 24th of September but have since dropped by roughly 780,000 addresses.

However, DOGS has about 12.05 million total addresses, which means roughly 6.05 million addresses have zero balance.

The total zero balance addresses appeared to be levelling out, which indicates a slowdown in sell pressure.

However, it is worth noting that addresses activity did not demonstrate a significant positive shift despite the recent uptick. In other words, the DOGS memecoin is yet to demonstrate strong accumulation.

Nevertheless, a slight change in sentiment occurred recently, which may be in favor of the bulls.

#dogs

Bitcoin Futures Market Attracts Unprecedented Open Interest as Derivatives Appetite Grows 

The latest bitcoin derivatives data indicates a continued climb in bitcoin futures open interest, hitting all-time peaks. Over the last day, statistics reveal an open interest of $32.30 billion across fourteen distinct bitcoin futures markets.

Soaring Open Interest in BTC Futures Signals Growing Derivatives Market

Friday, March 8, 2024, marked a notable day when BTC soared to a new peak price of $70,184 per coin at 10:30 a.m. Eastern Time. Although the price later declined, the bounce back was quicker compared to the substantial volatility bitcoin witnessed on March 5. The latest crypto rally has triggered a noticeable increase in open interest for crypto futures, particularly in bitcoin. Data indicates a total of $32.30 billion in open interest recorded in the last day, with CME Group at the forefront.

CME Group leads with $10.07 billion in volume, followed by Binance with approximately $7.21 billion. Bybit and Okx have reported $4.88 billion and $3.18 billion in open interest, respectively, over the last 24 hours. The leading three markets have also experienced increases in open interest in the same timeframe. Currently, bitcoin’s 24-hour open interest represents 48.2% of the $67 billion total across all crypto economy futures.

For example, on Friday, ETH futures markets saw $13.24 billion in open interest, and SOL futures reached about $2.50 billion. There have also been significant liquidations of long and short positions over the past week. In the last 24 hours, as BTC approached the $70K mark, the entire crypto economy saw $311.76 million in liquidations. Of this, $152.71 million were long positions, and $159.02 million were short, with $96.89 million of this total stemming from BTC short positions, which were eliminated over the past day.

$BTC
#TrendingTopic

Bitcoin tops $66,000 as it nears 2021 all-time high

The price of bitcoin rose to start the week, edging even closer to its all-time high after the rally took a breather over the weekend.

The flagship cryptocurrency was last higher by 5% at $66,288.70, according to Coin Metrics. Earlier, it rose to as much as $66,479.70, its highest level since November 2021. Ether advanced 1.5% to $3,525.21.

Both coins are coming off their best week in almost a year (bitcoin gained about 21% and ether 16%) but paused their run over the weekend as the market digested two days of steep outflows from the Grayscale Bitcoin Trust (GBTC) that were offset by inflows into other "newborn" bitcoin ETFs.

"With the birth of these nine new ETFs the big moves now tend to take place during the normal trading week rather than the weekends," said Antoni Trenchev, cofounder of crypto exchange Nexo. "What we're seeing today ... might well be a rerun of early last week when bitcoin surged $10,000 in the space of a couple of days. We're in that sort of environment when a day or two of sideways consolidation can precede explosive price action thanks to the voracious demand of these new spot ETFs."

Investors have been extra eager to see bitcoin approach its all-time high. At $66,000 it's sitting about 4% off its November 2021 intraday record of $68,982.20.

$BTC

#TrendingTopic #BTC #ETH

Bitcoin Mining Stocks Plummet Over 27% Despite BTC Rally

Over the last three trading days, Bitcoin mining stocks have dropped almost 27%, despite a recent Bitcoin rally that saw a top of $64,000.

Marathon Digital Holdings (MARA) has fallen to 18.5%, and Riot Platforms (RIOT) has plunged to 21.9% since Feb 27, according to data from Google Finance. CleanSpark (CLSK) dropped to 27.5%, while TeraWulf (WULF) also slumped to 25.4%.

One analyst suggests this drop might be due to unwarranted concerns about the upcoming halving and hints that this could present a good opportunity to buy these stocks at a low price.

Instead, Bitcoin skyrocketed from $51,000 to an all-time high of $64,000 and is currently settled at $61,350.

$BTC

#TrendingTopic #Portal #BTC #halvingofbtc

Bitcoin hits US$60K for 1st time in over 2 years. What’s behind the latest rally

Bitcoin’s price hit US$60,000 on Wednesday for the first time in more than two years, as a surge of capital into new U.S. spot bitcoin exchange-traded products fueled a rally that has reached 42 per cent this month, on track for its largest monthly gain since December 2020.

Bitcoin was last up 8 per cent at US$61,272, its highest since November 2021, when it hit a record just below US$70,000. It was also heading for its largest weekly gain in a year, up 18.5 per cent since Feb. 21.

Traders have poured into bitcoin ahead of April’s halving event – a process designed to slow the release of the cryptocurrency. In addition, the prospect of the Federal Reserve delivering a series of rate cuts this year has fed investors appetite for higher-yielding or more volatile assets.

#TrendingTopic #Portal

$BTC

Bitcoin spot trading volumes on centralized exchanges returned to peaks last seen when FTX crashed amid daily sustained demand for ETFs investing in crypto’s top currency

Trading volumes for spot Bitcoin (BTC) skyrocketed to a 16-month high on Feb. 28, with $34 billion worth of cumulative trades on CEXs. Binance was at the forefront of BTC trading on the day and recorded over $17 billion in Bitcoin trading volume. 

$Bitcoin Hits $51K, Regains $1T Market Capitalization

The bitcoin (BTC) price climbed through $51,000 in European morning hours on Wednesday, touching $1 trillion market capitalization for the first time since December 2021, data shows.

The rise came as bullish sentiment around continued growth of the largest cryptocurrency continued, with options traders betting on prices to touch as much as $75,000 in the coming months.

Some traders are targeting the $64,000 level in the coming weeks as demand from spot bitcoin exchange-traded fund (ETF) products grows. On Tuesday, BlackRock’s IBIT saw nearly $500 million in net inflows, indicative of buying demand.

$BTC