Bitcoin's dominance (Bitcoin-BTC) rose after one of the fiercest blows the crypto market has recently faced, following the liquidation of leveraged positions worth over a billion dollars, while BTC is now trading around $104,957, with a slight decrease of 0.17% yesterday, as traders reassess their risk appetite.
According to data from Coinglass, over 247,000 traders were liquidated within 24 hours, with the most notable of these liquidations being speculative positions on Bitcoin's price worth $200 million on the Binance platform, which is considered the largest liquidation event of this year. In this event, Binance and Bybit were the biggest victims, together accounting for $834 million in liquidated positions.
Consequently, speculation on the price increase formed the vast majority of these liquidations due to traders excessively using leverage based on the upward momentum supported by the initial public offering (IPO) of Circle and renewed interest in decentralized finance (DeFi) protocols in the United States.
These forced liquidations act as automated margin calls, and when traders fail to meet collateral requirements, platforms close these positions to protect their system. However, during periods of severe volatility, the pace of implementing these measures often accelerates, resulting in rapid price declines and intense selling waves in the market as a whole.
The growing dominance of Bitcoin as alternative currencies decline
Amid this event, alternative currencies suffered heavy losses, supporting the expectation that Bitcoin's price will rise above $104,000, as it seems that intense selling waves may drive investors to Bitcoin as it represents a relatively safe haven.
This has significantly increased Bitcoin's dominance - an indicator measuring the share of BTC's market cap in the overall crypto market - indicating that traders are fleeing from risky assets to the sector leader.
Technically, Bitcoin is trading above the Fibonacci retracement level of 0.236 at $104,872, and its positioning on the upward trendline supports its price movement since early June.
Conversely, the MACD indicator remained stable, indicating an early sign of declining downward momentum. If the bulls (speculators betting on price increases) manage to reclaim the 50-day exponential moving average (50-EMA) near $106,351 and surpass the Fibonacci level of 0.5 at $106,788, the opportunity for price movement towards the $108,864 level will remain.
Overall, this pattern increases the likelihood of forming higher lows, especially if Bitcoin's price continues to stabilize, while the formation of small trading candles indicates uncertainty and accumulation, which is typical behavior near correction cycle bottoms.
