As Bitcoin Dominance nears 3-year high, what this week holds for BTC
contributor
- The Bitcoin 2024 conference pushed BTC near $70K yet again.
- Whales seem to have come to a standstill as bulls wait for BTC’s next moves with bated breath.
Bitcoin’s [BTC] dominance was rising as the king coin kicked off the week with a strong bullish bid, aiming for $70,000.
This bullish performance builds on the Bitcoin 2024 conference hype and politically charged excitement that prevailed during the weekend.
The Bitcoin 2024 conference had a momentous impact on demand, and especially Bitcoin dominance.
The latter has been on an upward trajectory since mid-July, peaking at 56.76%, just a few points shy from achieving a new 3-year high.
Bitcoin dominance peaked at 57.03% in April 2024. The last time that it was that high was in April 2021.
Source: Tradingview
Will the FED’s upcoming announcement favor Bitcoin dominance?
A major Federal Reserve announcement is just days away, another factor that could push Bitcoin dominance to new 2024 highs. The FED will announce its next interest rate decision on the 31st of July.
The press time market sentiment suggested that 96% of analysts expected interest rates to remain unchanged in August.
Source: Tradingeconomics.com
Risk-on assets like Bitcoin would experience a surge in demand if the FED were to announce a rate cut. The FED’s announcement may not have much of an impact on asset prices if rates remain unchained.
Market sentiment is overwhelmingly in favor of a rate cut by 25 BPS in September.
More market confidence?
Bitcoin traded at $69,503 at press time, after a 1.81% rally in the last 24 hours. AMBCrypto is keen to see if it can drum up enough bullish confidence to push above the $70,000 range.
This is an important price point because BTC has been experiencing resistance and a resurgence of sell pressure above this zone since March.
Source: Tradingview
On the technical side, a push above $70,000 will also subject BTC to overbought conditions, as per the RSI. The MACD already suggested that bullish momentum was slowing down at press time.
These observations, alongside the upcoming resistance zone, signaled potential for a pullback, fueled by short-term profit-taking.
The long-term outlook remained bullish, however, especially after the Bitcoin conference. The excitement around the event has drummed up more confidence in other markets.
For example, Japanese firm Metaplanet has reportedly purchased Bitcoin worth over 1 billion Yen.
Metaplex’s stock has reportedly rallied by over 1,300% so far this year. A substantial amount of its stock price gains occurred in July, as the company ramped up its Bitcoin purchases in July. At press time, it held 246 BTC.
While this underscores some market confidence, Bitcoin’s ability to push above its current resistance zone depends on the level of demand that it can sustain above those levels.
Read Bitcoin’s [BTC] Price Prediction 2024-25
Bitcoin’s large holder netflow to exchange netflow ratio indicated that whales may not be moving a lot of their funds so far.
AMBCrypto will keep monitoring this indicator to assess the potential flows that could influence Bitcoin dominance and price in the next few days.
Source: IntoTheBlock
