Bitcoin Dominance Chart Patterns Suggest Impending Rally
Bitcoin (BTC) is currently trading sideways after briefly dipping into the lower $25,000 range. However, chart patterns indicate that the flagship decentralized finance (DeFi) asset could soon break out of its dominance downtrend, potentially triggering a rally.
Breaking its local downtrend while maintaining its higher timeframe uptrend, Bitcoin dominance is showing bullish signs. This trend has historically signaled the start of an upward impulse for the cryptocurrency. Analyst CredibleCrypto noted that in the past, BTC dominance breaking its local downtrend was followed by an impulsive leg, resulting in a $7,000 move.
On the other hand, crypto analyst CrypNuevo predicts a “fake pump” for Bitcoin, followed by a significant liquidation event that could push the price below $24,000.
Despite the mixed predictions, Bitcoin’s addition of over 700,000 new wallet addresses in a single day suggests growing investor interest and supports the possibility of a short-term bullish rally.
Hot Take: Bitcoin Dominance Chart Patterns Suggest Impending Rally
Chart patterns in Bitcoin dominance indicate that a rally could be on the horizon. While some analysts predict a fake pump followed by a significant drop in price, the addition of a large number of new wallet addresses suggests growing investor interest. As Bitcoin maintains its higher timeframe uptrend and breaks its local downtrend, there is a possibility of an upward impulse for the cryptocurrency. Keep an eye on Bitcoin dominance for potential trading opportunities.
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