- Bitcoin dominance has reached a local high, warning investors of a potential market overheating.
- THIS highlights the next best “dip” opportunity.
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.
Source : BGeometrics
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.
Additionally, as BTC becomes more vulnerable to speculative swings, the likelihood of increased short positions in futures trading rises, with traders targeting $64K as the next dip.
This situation further reinforces the idea that BTC might be awaiting a correction before attempting to test its ATH.
Source : CryptoQuant
Furthermore, a prominent analyst has also cautioned investors as volatility has shifted into negative territory, influenced by the surge in Bitcoin dominance.
Currently, the price fluctuates between $68.4K and $66.7K, while Open Interest on top exchanges has risen to $20.3B, making BTC even more vulnerable to sudden price swings.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Overall, the high Bitcoin dominance signals a market overextension, backed by other variables. The rapid ascent to $67K has pushed the market into greed, suggesting that the current price represents a market top.
While AMBCrypto analysis suggests that $64K is the next target for a potential local low, this presents the best dip-buying opportunity.
- Bitcoin dominance has reached a local high, warning investors of a potential market overheating.
- THIS highlights the next best “dip” opportunity.
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.
Source : BGeometrics
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.
Additionally, as BTC becomes more vulnerable to speculative swings, the likelihood of increased short positions in futures trading rises, with traders targeting $64K as the next dip.
This situation further reinforces the idea that BTC might be awaiting a correction before attempting to test its ATH.
Source : CryptoQuant
Furthermore, a prominent analyst has also cautioned investors as volatility has shifted into negative territory, influenced by the surge in Bitcoin dominance.
Currently, the price fluctuates between $68.4K and $66.7K, while Open Interest on top exchanges has risen to $20.3B, making BTC even more vulnerable to sudden price swings.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Overall, the high Bitcoin dominance signals a market overextension, backed by other variables. The rapid ascent to $67K has pushed the market into greed, suggesting that the current price represents a market top.
While AMBCrypto analysis suggests that $64K is the next target for a potential local low, this presents the best dip-buying opportunity.
where can i get clomiphene without dr prescription where can i buy clomid pill clomid other name clomid medication effects name brand for clomid can i buy generic clomid can i get clomid for sale
I couldn’t hold back commenting. Adequately written!
I couldn’t turn down commenting. Warmly written!
oral azithromycin 250mg – tinidazole 500mg usa cheap metronidazole 400mg
buy semaglutide pills for sale – order rybelsus 14mg pills oral periactin 4mg
domperidone canada – order flexeril 15mg without prescription oral cyclobenzaprine
buy clavulanate generic – https://atbioinfo.com/ order ampicillin online cheap
order warfarin 5mg pills – https://coumamide.com/ order cozaar 25mg pills
buy meloxicam 7.5mg pill – https://moboxsin.com/ where can i buy meloxicam
deltasone 40mg generic – asthma deltasone 20mg canada
buy generic ed pills online – https://fastedtotake.com/ the best ed pill
amoxicillin for sale – comba moxi amoxicillin tablets
diflucan 200mg brand – flucoan forcan us
buy lexapro 20mg generic – escitalopram 10mg pill purchase escitalopram pill
cialis and adderall – ciltad genesis how long does cialis last 20 mg
cialis medicine – https://strongtadafl.com/ cialis active ingredient
ranitidine pills – https://aranitidine.com/# zantac oral
cheap viagra super force – strongvpls viagra ice cream to go on sale at selfridges
More content pieces like this would create the интернет better. https://buyfastonl.com/azithromycin.html
More text pieces like this would make the интернет better. donde puedo comprar kamagra
This is the gentle of criticism I positively appreciate. https://ursxdol.com/sildenafil-50-mg-in/
This website absolutely has all of the low-down and facts I needed to this thesis and didn’t know who to ask. https://prohnrg.com/product/metoprolol-25-mg-tablets/
With thanks. Loads of erudition! https://aranitidine.com/fr/acheter-cenforce/