Bitcoin dominance breaks 5-year record
For the first time since April 2019, Bitcoin has achieved a remarkable milestone by escalating its dominance to 57.68%. In previous instances when Bitcoin's dominance soared to such heights, it sparked an extended bull trend, climbing to 71% dominance.
This notable breakout coupled with Bitcoin's current trading price of $59,179, marking a 0.73% increase over the past day, has led many to speculate about the possibility of an impending significant surge.
The Relative Strength Index (RSI) for Bitcoin is hovering at 51, indicating a balanced market without clear signs of overbuying or overselling. Additionally, the position of BTC near the upper boundary of the Bollinger Bands suggests a likelihood of upcoming price volatility to the upside.
A decisive break beyond the $59,000 mark with substantial trading volume could herald further price appreciation, potentially boosting Bitcoin's dominance even further.
Bitcoin’s reserves on exchanges stand at 2.585 million BTC, having risen only marginally by 0.04% in the past 24 hours. Despite a hint of short-term selling pressure, the trend over the week indicates decreasing reserves, suggesting a shift of Bitcoin to more secure, long-term storage solutions by investors.
The dynamism of Bitcoin's network is evident from its 8.4 million active addresses, marking a 1.13% rise in a single day, and a transaction count that has reached 515,260 in the last 24 hours, according to CryptoQuant, marking a 0.83% increase. Such continuous growth in on-chain metrics underscores the strengthening of Bitcoin's dominance and solid network fundamentals.
The 60-day Market Value to Realized Value (MVRV) ratio currently stands at -1.81%, suggesting that investors are, on average, holding onto Bitcoin at a slight loss. With negative MVRV values traditionally indicating undervaluation, this presents Bitcoin as a potentially lucrative buy at this juncture.
Given its dominance over 57.68%, aligned with robust on-chain metrics and favorable technical indicators, Bitcoin appears on the cusp of initiating another grand rally.
Nonetheless, maintaining the momentum above key price points like $59,000, together with sustained network activities, will be critical in determining Bitcoin's ability to fortify its dominance and catalyze a wider market bull run.
