Bitcoin [BTC] has achieved a notable milestone by reaching a dominance level of 57.68%, a peak not seen since April 2019. In the past, such high levels of Bitcoin dominance have often marked the beginning of a substantial uptrend, pushing the dominance figure towards 71%.
As Bitcoin currently stands at $59,179, with a 0.73% increase in the last 24 hours, many are speculating about the possibility of a significant rally on the horizon.
Indicators Point Towards Potential Upside Movement
Bitcoin’s Relative Strength Index (RSI) is currently at 51, indicating a neutral market sentiment without any extreme buying or selling pressures. Concurrently, the Bollinger Bands reveal that BTC is close to the upper band, suggesting a likelihood of upward price volatility.
If Bitcoin manages to breach the $59,000 mark with substantial trading volume, it could signify further price appreciation, helping to sustain or even expand its market dominance.
Shift in Exchange Reserves Reflects Long-Term Investor Confidence
The total Bitcoin reserves on exchanges amount to 2.585 million BTC, showing only a slight 0.04% increase in the last 24 hours. Despite some short-term selling activity, the overall trend indicates a decrease in reserves over the week.
This trend suggests that investors might be transferring Bitcoin from exchanges to secure cold storage, indicating robust long-term confidence in the cryptocurrency.
Strong Network Activity Evidenced by Active Addresses and Transactions
Bitcoin’s network activity remains strong, with a notable increase to over 8.4 million active addresses, reflecting a 1.13% rise in the previous day. Additionally, the daily transaction count has surged to 515,260, marking an uptick of 0.83%, as per data from CryptoQuant.
This continuous growth in on-chain activity underscores Bitcoin’s dominance surge and reinforces its strong network fundamentals.
MVRV Ratio Indicates Potential Buying Opportunity
The 60-day MVRV ratio currently sits at -1.81%, indicating that investors, on average, hold Bitcoin at a slight loss. Historically, negative MVRV values have suggested undervaluation, hinting at a potential course correction for Bitcoin and presenting a buying opportunity.
Will Bitcoin Lead a Market Resurgence With Another Bull Run?
With dominance exceeding 57.68%, sturdy on-chain fundamentals, and positive technical signals aligning, Bitcoin may be gearing up for a substantial rally ahead.
However, pivotal levels such as $59,000 and the ongoing network activity will play a crucial role in confirming whether Bitcoin can further solidify its dominance and spark a broader bullish market trend.