1. Current Context:
- Current Dominance Level: Bitcoin dominance has reached 64.84%, approaching a test of the 66% level, which is considered a critical turning point.
- Levels in the picture: The picture shows a descending gradient from 64.84% to 52.50%, but the current trend is strongly upward.
2. Technical Interpretation:
- Next Resistance (66%):
- This level is considered psychological and historical resistance. Breaking it could open the door for a long upward wave.
- Current support: 63% and 61.32% (potential bounce areas in case of correction).
- Signals from the picture:
- The numerical gradient in the picture reflects previous support areas, but the current upward trend ignores them, confirming the strength of momentum.
3. Forecasts and Scenarios:
Scenario One (Correction before 66%):
- Dominance may face selling pressure at 66%, leading to a correction towards 63% or 61.32%
- Prediction Symbol: 🌀
Scenario Two (Strong Breakout):
- If dominance closes above 66% with increasing volume, it may target 70% as the next phase.
- Prediction Symbol: *🚀
Scenario Three (Sudden Collapse):
- A failure to break through and a dominance collapse below 61% may indicate a return of liquidity to altcoins.
- Prediction Symbol: 💥
4. Impact of Dominance on the Market:
- Increasing Dominance:
- Weak performance of altcoins due to the shift of investments towards Bitcoin.
- Example: Ethereum and Binance Coin dropping by 5-10%.
- Decreasing dominance:
- Rapid recovery for small coins and new projects.
5. Suggested Strategies:
- For protective wallets:
- Increase Bitcoin's share in the portfolio.
- Set stop-loss orders below 63% to exit in case of correction.
- For traders:
- Monitor strong fundamental altcoins for buying at lower dominance.
6. Poll: Will dominance exceed 66%?
- ❌ No, the dominance will collapse soon (Symbol: 🔥)
- 🔄 Possible, but it may correct before. (Symbol: ❤️)
- ✅ Yes, dominance will rise further (Symbol: 🚀)
Summary:
The current dominance reflects investors fleeing to safety as global risks escalate. The picture shows an upward trajectory, but the real test will be at 66%. Being prepared for all scenarios is the key to success!
