- Bitcoin’s dominance came under the support of an ascending triangle pattern.
- BTC price has successfully tested a crucial support level in recent days.
Bitcoin [BTC] has been facing setbacks for several days as it continued to struggle at well below $60,000. Meanwhile, dominance also decreased, indicating an increase in the presence of altcoins. But there was more to the story.
Bitcoin’s dominance seems worrying
AMBCrypto’s analysis of CoinStats’ facts revealed that Bitcoin dominance has been on a downward trend for the past seven days. At the time of writing, the indicator had a value of 53%.
Sensei, a popular crypto analyst, even posted one tweet point to an important development. According to the tweet, BTC’s dominance fell below a crucial support level of an ascending triangle pattern, indicating that BTC’s price could fall further in the coming days.
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At the same time, another prominent BTC indicator registered a massive decline. Axel, a famous crypto analyst, recently posted on X that Bitcoin’s Relative Strength Index (RSI) fell.
According to the tweet, the RSI has fallen to the lowest level since July this year. For starters, a drop below 30% means an asset is heavily oversold.
While this initially looked bearish, a look back at the past revealed something bullish. A similar decline was seen in 2023. When BTC’s RSI fell sharply last year, it indicated a market bottom.
This was the case once the RSI dropped and the price of BTC rose in an upward direction, resulting in the latest bull rally.
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Has the BTC market bottom been reached here?
AMBCrypto’s analysis of Glassnode’s data revealed that the price of BTC was already well below the market bottom. According to the Pi Cycle Top indicator, BTC’s possible bottom was at $63,000.
CoinMarketCaps facts revealed that at the time of writing, BTC was trading at $54,706.58 with a market cap of over $1.08 trillion.
Source: Glassnode
The good news was that after a week where BTC witnessed a price correction of almost 5%, the last 24 hours were in favor of investors. This was the case when the king coin managed to marginally increase its price.
If the above data sets were true and the Pi Cycle Top indicator is to be believed, then the chances of BTC’s price falling further were slim.
Read Bitcoins [BTC] Price prediction 2024–2025
That’s why AMBCrypto took a look at BTC’s daily chart to better understand what to expect from it. We found that BTC had successfully tested its support at $54,000.
The Chaikin Money Flow (CMF) recorded an uptick, indicating that BTC could be embarking on a recovery trajectory.
Source: TradingView