Bitcoin [BTC] has achieved a significant milestone, closing its dominance level at 57.68% for the first time since April 2019. In the past, when Bitcoin’s dominance reached similar levels, it sparked a prolonged upward trend, driving dominance up to 71%.
Following this recent development and with Bitcoin currently priced at $59,179, showing a 0.73% increase in the last 24 hours at the time of writing, many are pondering whether it’s poised for another substantial rally.
RSI and Bollinger Bands Point to Potential Upside
The current RSI for Bitcoin sits at 51, indicating a neutral market stance with no significant signs of excessive buying or selling pressure. Meanwhile, the Bollinger Bands position BTC close to the upper band, typically signaling a potential surge in price volatility.
If Bitcoin manages to surpass the $59,000 mark with robust trading volume, it could indicate further price appreciation, bolstering its market dominance.
Reserves on Exchanges Hint at Long-Term Holding Trends
Bitcoin’s exchange reserves currently stand at 2.585 million BTC, registering a minor 0.04% uptick over the last 24 hours. While this may indicate short-term selling pressures, a broader trend shows a consistent decline in reserves throughout the week.
This suggests that investors might be transferring Bitcoin from exchanges to secure cold storage, signaling a high level of long-term confidence.
Active Addresses and Transactions Demonstrate Strong Network Activity
The Bitcoin network continues to exhibit robust activity, with more than 8.4 million active addresses, reflecting a 1.13% increase over the past day. Furthermore, the transaction count rose to 515,260 in the last 24 hours, marking a 0.83% uptick, as per data from CryptoQuant.
This consistent growth in on-chain activity bolsters Bitcoin’s dominance surge, underscoring the network’s strong fundamentals.
MVRV Ratio Indicates Potential Buying Opportunity
The 60-day MVRV ratio currently stands at -1.81%, suggesting that, on average, investors are holding Bitcoin at a slight loss. Historically, negative MVRV values have signaled undervaluation, hinting that Bitcoin could be gearing up for a corrective upswing, presenting a potential buying opportunity.
Could Bitcoin Lead a Market Recovery?
With dominance exceeding 57.68%, robust on-chain fundamentals, and aligning technical indicators, Bitcoin might be gearing up for another significant surge.
Nevertheless, critical levels like $59,000 and ongoing network activity will be pivotal in confirming whether Bitcoin can sustain its dominance and trigger a broader bullish market sentiment.