Bitcoin dominance forms a falling wedge pattern, breaking out to signal potential rise toward 61% and prices near $117,000.
Institutional investors, including Asia’s first Bitcoin treasury fund and MicroStrategy, increase Bitcoin accumulation significantly.
Resistance near 59% dominance is critical; a breakout could drive renewed capital flow from altcoins back into Bitcoin.
Bitcoin dominance faces a crucial test as it dips from a high of 65% to 58.7%. Market momentum hints at a rebound, but conflicting forces keep traders guessing on the next big move.
Technical Patterns Point to Possible Rebound
Bitcoin dominance is shaping up in a classic falling wedge pattern on both the weekly and daily charts — a setup that typically signals a bullish reversal. It has already broken out above the upper trendline, pointing to building upward momentum.
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Bitcoin dominance is now eyeing the 61% mark, which lines up with BTC prices approaching $117,000. The strong trading activity seen in the 58–59% range adds more weight to this outlook, showing that investors are paying close attention at these levels.
On shorter timeframes, Bitcoin dominance consolidates near a key resistance just below 59%, a level it has tested several times. The series of higher lows suggests growing buying strength. A breakout above this resistance could spark a stronger rally, pulling capital back from altcoins and strengthening Bitcoin’s market lead.
Different Views Suggest Possible Downtrend
Even with some bullish signals on the charts, a number of analysts remain cautious. The weekly timeframe shows Bitcoin dominance slipping below a key horizontal level around 58% — a range that has historically acted as a strong support and resistance zone.
The failure to stay above the 200-week moving average also hints at weakening bullish momentum. Volume data highlights the importance of this level, with heavy trading near 58%.
This setup could lead to a further decline in Bitcoin dominance, possibly falling toward 50%. Such a move would suggest more capital shifting to altcoins, indicating a longer altseason phase. Investors will watch these levels closely to understand Bitcoin’s market leadership in the medium term.
Institutional Buying Strengthens Bitcoin’s Position
Institutional interest in Bitcoin remains strong. Asia’s first Bitcoin treasury fund, started by Sora Ventures, plans to buy $1 billion in BTC. MicroStrategy’s recent buying is also significant, with over half of its Bitcoin acquired in the last 13 months. Michael Saylor expresses strong long-term belief, suggesting Bitcoin’s value will grow greatly.
This institutional buying offers additional support for Bitcoin’s price and dominance, showing growing confidence from big holders. While technical signs point to both potential gains and losses, continued accumulation by whales and companies could shape Bitcoin’s path in the coming months.
