- BTC has fallen by more than 5% in the past seven days.
- BTC price could drop to 61k before turning bullish.
After a sharp decline, Bitcoin [BTC] Its dominance has increased in recent days. The recent rise in Bitcoin dominance was not the result of a BTC bull rally, but rather a result of altcoins turning bearish.
Therefore, AMBCrypto checked the state of BTC to see how its increasing dominance could affect the coin’s price.
Bitcoin’s Increasing Dominance Amid a Price Slump
CoinMarketCaps facts revealed that the price of BTC has fallen by more than 5% in the past seven days. This pushed the price of the coin below $63,000.
In the last 24 hours alone, BTC fell 2%. At the time of writing, it was trading at $62,369.67, with a market cap of over $1.22 trillion.
The downturn was not just limited to BTC, including various altcoins Ethereum [ETH]also witnessed price corrections.
The overall decline in altcoin market capitalization allowed BTC’s dominance to rise again after a steep decline on April 28. At the time of writing, Bitcoin dominance stood at 50.9%.
Source: CoinStats
Will Increasing Dominance Make BTC Turn Bullish?
As BTC’s dominance increased, AMBCrypto planned to monitor its metrics to find out how this affected investor sentiment. We found that selling pressure on BTC has subsided in recent hours as the exchange reserve fell.
Moreover, net deposits into the exchanges were also low compared to the average of the last seven days. A look at CryptoQuant facts revealed that miners were also selling at a slower pace, indicating their desire to hold BTC.
Source: CryptoQuant
The increase in buying pressure and investors’ willingness to hold BTC could cause a trend reversal, allowing BTC to paint its charts green. To better understand whether that is possible, we next analyzed BTC’s daily chart.
According to our analysis, BTC’s Chaikin Money Flow (CMF) registered an increase and had a value of 0.08 at the time of writing.
A similar upward trend was also noted on Bitcoin’s Money Flow Index (MFI) chart. Both technical indicators pointed to a price increase in the coming days.
However, the Relative Strength Index (RSI) remained bearish and registered a decline.
Source: TradingView
Read Bitcoins [BTC] Price prediction 2024-2025
Going forward, we analyzed the chart of BTC to predict the next possible targets that BTC could hit if a bull rally were to occur. The price of BTC could first fall to $61,000 support in the short term.
A successful test of that support could trigger a bull rally, allowing it to reclaim $66,000 first. A further price increase could see BTC reach $71,000 before hitting a new all-time high in the coming months.
Source: TradingView