Bitcoin Climbs to Unprecedented Heights
Why Can Bitcoin Maintain Its Dominance?
Bitcoin's current price is $111,486.13, up 8.34% on the day, a remarkable increase. Trading enthusiasm is high, with trading volume soaring by 82.64% to $89.74 billion. However, Bitcoin's market dominance has remained relatively unchanged over the past month, holding steady at 63.90%. Technical analysis suggests that as its dominance breaks below the rising wedge pattern, the market landscape may shift, opening the door for an altcoin rebound.
Is an Altcoin Surge Coming?
CoinMarketCap's altcoin season index currently stands at 24 (out of 100), indicating that while the altcoin boom has not yet arrived, there are signs that it is forming. Historically, when Bitcoin's price exceeds its historical peak by more than 10%, altcoin prices tend to experience significant increases of 50% to 200% within 2 to 4 weeks. Market observations suggest that a similar pattern may emerge soon.
The technical initiation of the altcoin season requires some key indicators. If Bitcoin's dominance index (BTC.D) falls below 61.94%, it signals a potential market shift. If it falls further below 60.24%, it would confirm that the altcoin season has indeed begun. To maintain market confidence, Bitcoin's price needs to remain stable during this period.
Market experts like CryptoBusy suggest focusing on high-quality altcoins that have not yet seen significant growth, with some predicting that altcoin values could rise by 200% in the coming weeks.
Recent positive factors have driven the market upward, including supportive remarks from President Donald Trump and JPMorgan's interest in Bitcoin options. Additionally, progress on the GENIUS Act in the U.S. Senate and significant purchases of spot Bitcoin ETFs (totaling 3,120 Bitcoins) reflect institutional investors' strong confidence in the market. For the flourishing of altcoins, the stability of Bitcoin's price is crucial.
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