On July 10th, Bitcoin prices rose slightly, reaching an all-time high of $111,999, driven by optimistic expectations regarding interest rate cuts from the Federal Reserve this year, which triggered a surge in interest in risk assets. Subsequently, Bitcoin's market cap has reached 65% and is testing the resistance level before the significant breakout in 2020.
As BTC breaks through its historical high, Bitcoin's dominance approaches the resistance level from 2020.
Bitcoin recently reached a historic high, leading to profits for most traders, and interest in Bitcoin is increasing in the market. According to CoinGape, the continuous rise in Bitcoin is backed by market expectations for interest rate cuts in 2025 and the upcoming debates on the CLARITY Act, which will pave the way for more favorable cryptocurrency regulations in the U.S.
According to CoinMarketCap data, as of the time of writing, BTC's market capitalization has soared to $2.21 trillion, and its dominance in the cryptocurrency market has significantly increased. As of the time of writing, BTC's dominance stands at 65.38%, at a strong resistance level.
The last time a dominance break at this level occurred due to a rise in Bitcoin prices was in December 2020. Once this resistance level was broken, the indicator soared to 73% in less than two weeks.
Breaking this resistance level also led to a 36% rise in BTC prices at the end of 2020, increasing from $19,000 to $26,000. If history repeats itself and Bitcoin records the same increase, then a 12% rise would bring its price to $124,000.
Nevertheless, Bitcoin has repeatedly encountered resistance at this dominance level, and there are currently no signs that this time will be different; after all, setting a new high also marks a strong resistance level. So, does this rise in dominance signal a crash or a rebound in Bitcoin prices?
What will be the next move for BTC prices, $107,000 or $135,000?
The technical structure clearly shows mixed predictions for Bitcoin prices, as BTC faces resistance not only in terms of its dominance but also in price performance on the daily chart. Looking at BTC's performance since May, it is evident that it is repeating a price fractal, where new highs often precede a pullback to the support area between $102,000 and $103,000.
If history repeats itself, Bitcoin may pull back after forming a recent high, with direct support located below $107,000, specifically at the 61.8% Fibonacci level of $106,753. The resistance of the ascending parallel channel further exacerbates this possibility of a decline, and if the price fails to break through this channel, it may also lead to a pullback.
On the other hand, due to favorable market factors, such as the upcoming cryptocurrency week, BTC prices still have the potential to break through the resistance level. If this occurs, the price could reach $135,000, hitting the 261.8% Fibonacci level of $134,231.
The rise in RSI provides further room for Bitcoin prices to increase, as its value is 62, indicating that bullish momentum is very strong, and since it is not yet overbought, Bitcoin still has room for further increases.
In summary, BTC prices are rising, which has also led to its dominance being at a multi-year high and facing strong resistance. Unless buying habits change and more traders are willing to buy BTC at historical highs, there is a possibility that BTC prices could retrace to $107,000.
