BTC.D set a new high after 3 months, leading to many conflicting forecasts.

Bitcoin Dominance (BTC.D) – Bitcoin 's share of total market Capital – has increased continuously over the past two weeks, and at one point was the only green color the market had.

This is a closely watched index to predict Capital flows, but currently there are many conflicting predictions. The following are the notes and reviews of BTC.D from BeInCrypto.

Also Read: These 4 charts show that Bitcoin's bull cycle is not over

BTC.D sets new high in 3 months

Today, July 26, BTC.D has exceeded 56.5% and this is the highest level since April 13 until now. Many predicted and expected a BTC.D correction along with Capital inflows into Altcoins to trigger a brilliant Altcoin season, but that has not happened yet.

Looking back over a long period of time from the beginning of 2023 until now, the increasing momentum of BTC.D is slow but very steady. This is a completely different phenomenon from previous cycles. Capital flows do not flow according to the rules as long-time investors realize, but over the past 1.5 years, Bitcoin price has increased in parallel with BTC.D as confirmed that "Bitcoin Season" is not over yet.

There is a notable comparison, market Capital in mid-2024 is around 2,500 billion USD, equivalent to the beginning of 2021. At that time, Bitcoin in early 2021 was also over 60,000 USD as it is today. But the difference is that BTC.D in 2021 is 60% and currently it is only 56.5%. This is suggesting that BTC.D continuing to increase up to 60% is also completely reasonable.

Many mixed predictions about BTC.D Q3 fluctuations

The difference in BTC.D volatility predictions comes from an analytical perspective. As follows:

#first. How to approach BTC.D from the perspective of the rising wedge model

From a technical analysis perspective, many experienced traders believe that BTC.D is in a rising wedge model, which is a correction forecast model. And the higher BTC.D only increases the opportunities for those who allocate Capital to Altcoins from now on.

This view is echoed by many analysts. It does not deny the possibility that BTC.D will continue to increase in July, but it predicts the possibility that BTC.D will correct from now on or at the 59% area. At that time, many Altcoins set a new Dip and will recover at the same time as the correction momentum of BTC.D returns to the 51% area.

#2. Approach BTC.D from current market Capital flow assessment

Some arguments about Capital flows supporting the scenario where BTC.D continues to increase are as follows:

• Selling pressure for ETH following the approval of the ETH ETF will continue in the last week of July and possibly into early August. Recent analysis from BeInCrypto shows that the Ethereum ETF does not seem to be doing enough to stimulate interest. of the market like the Bitcoin ETF used to be.
• This selling pressure is causing ETH Dominance (ETH.D) to fall sharply in recent weeks and will continue to decline, BTC.D has thus recovered (proportion recalculated).

Colin Talks Crypto (@ColinTCrypto) Chia the above opinion, but predicts that BTC.D may correct in the 60% area.

Thus, although the perspective of making predictions is somewhat different, they share the same warning area of ​​59% - 60%. That is both a historical high of resistance and a technical pattern high.

Also Read: 4 signals that it is difficult for bears to prevent Bitcoin from setting a new ATH

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