The crypto market has shown volatility recently especially with Bitcoin attempting to recover to levels above $70,000 encountering resistance. The data from Santiment showed that there were high social mentions relating to Bitcoin prices in the $70,000-$79,000 range which might have slowed the rally. Industry experts suggest that whenever a crowd is expecting a drastic increase in price, then the reverse may happen.
Between September 15 and October 15, there is an increased number of social media discussions pointing towards $50k-$59k Bitcoin, which marks market bottoms. In contrast, the number of Bitcoin mentions between $70,000 and $79,000 reached its highest levels at the formation of tops. Santiment also points out that crowd-fueled speculation is usually a sign of a reversal of the prevailing trend.
📈📉 $70K Bitcoin may still be in crypto’s near future, but the rally toward this coveted price level quickly pumped the brakes after a bullish sentiment outbreak from the crowd Tuesday.
🤓 Data on @santimentfeed continues picking up bottoms forming on high frequencies of… pic.twitter.com/QjXLJPRfSs
— Santiment (@santimentfeed) October 15, 2024
On September 27, Bitcoin’s price surged past $67,000, leading to increased enthusiasm and predictions of a climb past $70,000. However, by October 1-3, Bitcoin teased a fall below $60,000, sparking bearish sentiment across social platforms.
BTC Dominance Reaches New Cycle High
In a separate development, Bitcoin’s market dominance has reached a new high. Benjamin Cowen, a crypto analyst, points out that Bitcoin’s dominance in the crypto market is now above 58%, its highest in the current cycle. Over the past two years, Bitcoin has steadily gained market share, suggesting that while other cryptocurrencies experience more volatility, Bitcoin continues to strengthen its foothold. The dominance chart shows a clear upward trend since early 2023, with Bitcoin’s market share rising from around 40% to current levels.
#BTC dominance is at a new cycle high 🔥🔥🔥 pic.twitter.com/p8CTyko1Fv
— Benjamin Cowen (@intocryptoverse) October 15, 2024
This rise in dominance could also be a sign of investors returning to Bitcoin as some of the appeal of altcoins start to fade amid uncertainty. Due to high volatility in the market, investors may choose Bitcoins more, hence expanding its market share. In the past, the Bitcoin dominance increased during bear phases because during such times, people look for the most stable asset.
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Bitcoin Consolidation Poised for a Breakout
Dan Gambardello, another crypto analyst, noted that Bitcoin has been consolidating for 216 days, as seen in the BTC chart showing a triangle formation. A breakout from this consolidation phase could result in a rapid price surge.
The analyst also notes that if the price level of Bitcoin rises above the upper trendline of the triangle chart pattern, the market is capable of moving to the meteoric level. The current consolidation has been going on for a long period and has left the market expecting a new direction that may determine the next move of the market in the coming months.
