- Bitcoin nears critical $70,000 mark, a close above could ignite further gains and push it towards $70,600 soon.
- Traders are closely monitoring BTC dominance, which, if it surpasses 60%, may signal a surge to 71%.
- A drop in Bitcoin dominance below the 21-day EMA could spark a major altcoin rally, reshaping the market landscape.
Bitcoin is approaching important levels that will likely determine the future direction of the cryptocurrency market. On Monday, in an X post, Egrag Crypto noted that Bitcoin has already gone past the $66,500 mark, but the next milestone is a 3-day close above $70,000. Such a level, if broken, might trigger additional price increases that would propel token to at least $70,600 in the near term.
This level of $70,600 is very important for further Bitcoin growth. With such a close missing, the chance of a price retest remains on the table. These are developments that market participants look at to try to determine whether Bitcoin is going to be able to hold these gains and not drop back in value. Nevertheless, expectations are still high that BTC will hit a new ATH if some levels are breached.
Bitcoin Market Dominance Shift
In a broader sense, the focus is made on the analysis of the Bitcoin’s dominancy in the cryptocurrency market. The structure of the indicators suggests that Bitcoin dominance is likely to fall to important levels and may signal the change in market dynamics. If BTC dominance closes above 60%, it could lead to a major rise, possibly as high as 70-71%. This could imply that cryptocurrency is gradually increasing its dominion over the whole market.
On the one hand, if the Bitcoin dominance is bearish, it means that other cryptocurrencies are likely to rally. The 21-day Exponential Moving Average (EMA) has been a point of interest for traders at the moment.
Altcoin Rally Potential Ahead
This may start a major rally in altcoins if the BTC dominance drops below this level and also confirms a downward trend in the monthly time frame. Such a situation would probably give a boost to the altcoin investors as they get ready for a possible change in the market. At the time of writing, BTC is trading at $68,148 indicating a 0.23% loss over the last 24 hours.
Source: TradingView
For now, Bitcoin dominance is increasing slowly, and there are signs that the market is in the process of the last phase of a larger structural shift. Only time will tell whether BTC would be able to retain its position or whether the altcoins will steal the show. Traders of BTC and other altcoins are using key prices and market dominance figures to prepare for the possibility of a period of high volatility.
