Last Updated: 12 September 2023
Bitcoin (BTC) has been treading a sideways path in recent days, hovering around the lower $25,000 range after a brief dip. However, a closer look at chart patterns suggests that the leading decentralized finance (DeFi) asset may be on the verge of breaking out of its dominance downtrend, possibly paving the way for a significant rally.
Bullish Signals from Bitcoin Dominance
Bitcoin dominance breaking its local downtrend while still maintaining its upward trajectory on higher timeframes is viewed as a bullish signal. This pattern has previously signaled the initiation of a bullish trend for the pioneer digital asset, as noted by the pseudonymous cryptocurrency analyst CredibleCrypto on September 12.
According to this crypto expert, history shows that “five days after BTC dominance broke its local downtrend, price followed suit with the next impulsive leg, which was a $7,000 move.” When combined with Bitcoin’s continued bullish structure and support at $24,800, this presents a compelling case that “our next impulse is just around the corner.”
Long-Term Rally Indicators
In addition to the positive short-term indicators, Bitcoin may also be setting the stage for a longer-term rally. Analysis of previous market cycles reveals a pattern where a downtrend follows a previous market top, followed by an accumulation phase, recovery, and ultimately a bullish rally, as highlighted by CryptoYoddha.
Current Bitcoin Price and Outlook
As of the latest data on September 12, Bitcoin is trading at approximately $25,812, representing a modest increase of 0.39% over the past 24 hours. While it has posted a weekly gain of 0.55%, it still records a monthly loss of 12.15%. These fluctuations indicate the potential for volatility in the near future.
Mixed Predictions in the Crypto Space
While some analysts anticipate a bullish rally, others, like crypto analyst CrypNuevo, have warned of a “fake pump” in Bitcoin’s price, possibly preceding a significant liquidation event that could push Bitcoin below the $24,000 mark, as reported by Finbold on September 11.
Growing Investor Interest
Amidst these speculations, Bitcoin has seen a surge in new wallet addresses, with over 700,000 added in a single day on September 9. This surge is reminiscent of a similar trend observed on December 14, 2017, when Bitcoin added 800,000 new addresses. This uptick suggests a growing investor interest in the cryptocurrency, supporting the argument that a short-term bullish rally could be imminent.
Such fervent engagement in the cryptocurrency space underscores the potential for short-term bullish momentum, making platforms like BitQZ and Immediate Fortune valuable resources for those looking to navigate this dynamic market landscape.