The 70% mark is a key level; in both the August 2019 bear market and the December 2020 DeFi bull market, BTC’s market dominance briefly hit 70% before quickly dropping.
From several perspectives, we can evaluate whether the main players are taking profits or if price action is normal consolidation.
BTC ETF saw net outflows, and institutional investors believe the investment value of BTC is gradually declining.
BTC repeatedly broke above 105,000, but momentum is beginning to wane; a break above 106,000 may lead to greater pullbacks from highs.
BTC dominance has declined for the first time and entered a consolidation phase, while altcoins are enjoying a broad rally. BTC volatility is gradually increasing, presenting potential risks and opportunities ahead.
ETH has been declining relative to BTC for an extended period, making ETH highly cost-effective during this rebound.
BTC reaching $100K signals that the previous decline from $110,000 to $74,500 was part of a market correction, with $74,500 likely marking the bottom. As long as BTC remains above the daily MA140 (currently at $92,249), the upward momentum is expected to continue.
The 70% mark is a key level; in both the August 2019 bear market and the December 2020 DeFi bull market, BTC’s market dominance briefly hit 70% before quickly dropping.
After BTC's price retraction from its peak, altcoins followed BTC's movement and also corrected.
There is a large-scale VC withdrawals from early-stage token markets, and a narrative vacuum alongside the contraction of TVL and trading volume, creating an unfavorable environment for altcoins.