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Bitcoin (BTC) 
$111,068 has seen a significant rise in its dominance, climbing from 54% to 59.48% this month. According to analysis platform Glassnode, a similar trend occurred during the 2020 cycle when dominance dropped below 60% in November 2020 and surged to 69% by January 2021. Historical data suggests that surpassing these dominance levels tends to initiate long-term bullish trends. Conversely, Bitcoin’s price has experienced a 3.60% drop in the last 24 hours, currently trading at $98,943.
Indicators Signal Caution Despite BTC Dominance Rise
Although the increase in BTC dominance has led to interpretations of a long-term bullish trend, it also pressures the altcoin market, causing significant pullbacks. Additionally, data from prominent crypto analytics platform CryptoQuant indicates that the Bitcoin Cycle Index (IBCI) has entered the “distribution zone” for the first time in eight months.
Key metrics such as the Puell Multiple, MVRV, NUPL, and SOPR signal that the market is nearing a cyclical peak. While remaining below 100 suggests potential for upward movement, investors need to exercise caution. The NUPL indicator approaches its upper limits while the Puell Multiple nears its lower bounds, presenting a complex picture.
Experts note that while these indicators bear similarities to past cycles, market dynamics have shifted. The decline in BTC reserves on exchanges indicates that long-term investors are holding onto their assets tightly.
Additionally, there has been a noteworthy increase in network activity, with active addresses on the Bitcoin network rising by 2.30% over the past week.
Surge in Large Transactions
Data shared by analyst Ali Martinez shows that Bitcoin transactions valued at $100,000 and above have surged from 15,620 to 32,320 in the past week. This spike suggests renewed participation from institutional investors and large-cap players. Historically, increases in large transactions have preceded significant price movements.
From a technical perspective, Bitcoin’s daily RSI is at 60, indicating room for upward movement. However, the price’s proximity to the upper limit of the Bollinger Bands suggests high volatility. The situation has become complicated with prices dipping below the psychological support level of $100,000.
Market participants are keenly watching whether Bitcoin will trigger a new rally in the coming weeks. While both technical and fundamental indicators signal bullish potential, caution is advised as the market evolves.
