Bitcoin Rally Potentially on the Horizon as BTC Dominance Breakout Looms

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.

  • Luke Handt

    Luke Handt is a seasoned cryptocurrency investor and advisor with over 7 years of experience in the blockchain and digital asset space. His passion for crypto began while studying computer science and economics at Stanford University in the early 2010s.

    Since 2016, Luke has been an active cryptocurrency trader, strategically investing in major coins as well as up-and-coming altcoins. He is knowledgeable about advanced crypto trading strategies, market analysis, and the nuances of blockchain protocols.

    In addition to managing his own crypto portfolio, Luke shares his expertise with others as a crypto writer and analyst for leading finance publications. He enjoys educating retail traders about digital assets and is a sought-after voice at fintech conferences worldwide.

    When he's not glued to price charts or researching promising new projects, Luke enjoys surfing, travel, and fine wine. He currently resides in Newport Beach, California where he continues to follow crypto markets closely and connect with other industry leaders.

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