Bitcoin price is facing an inflection point as it sits near the support at $23,931, with immediate resistance near $24,500. Crypto Tony, a prominent crypto expert, says that BTC dominance is slowly approaching his main target at the swing high of around 48.90%, which could trigger a final sell-off on altcoins.
Altcoins at Risk as BTC Dominance Climbs
Crypto Tony’s bearish outlook on altcoins is shared by many investors and traders as BTC dominance continues to climb. If it reaches the target of around 48.90%, it could lead to significant downward pressure on altcoins. As Bitcoin accounts for more of the overall crypto market, altcoins may struggle to gain momentum and see significant price declines.
Bitcoin Options Markets Indicate More Volatility
Bitcoin’s recent swings from two-month lows to nine-month highs have traders expecting more turbulence in the short term. Bitcoin options markets show that traders expect further volatility as the cryptocurrency faces immediate resistance near $24,500 and major resistance near $25,200.
BTC Faces Downside Risk if it Fails to Break $25,000
Bitcoin’s inability to break above the $25,000 ceiling could result in a decline below the $22,459 level, with selling pressure likely to increase. The price of Bitcoin is currently near the 23.6% Fib retracement level of the recent decline from the $26,526 swing high to the $23,913 low, with consolidation in a range above $24,000.
The 50-day Exponential Moving Average (EMA) at the $22,459 level provides additional support, but a break below this level could see BTC drop below the 200 and 100-day EMAs at $21,855 and $21,502 levels, respectively. This could trigger a significant sell-off in altcoins.
Investors and traders should exercise caution when investing in cryptocurrencies, given their inherently volatile nature. While Bitcoin has recently seen significant gains, it remains at risk of a downside break, which could lead to a final sell-off on altcoins. As always, investors and traders should closely monitor the markets and be prepared to adjust their positions accordingly.
Bitcoin Dominance Reflects Growing Demand for the Crypto King
BTC dominance, which measures the percentage of Bitcoin’s total market capitalization relative to the overall crypto market, has been on the rise since the start of the year. This indicates growing demand for Bitcoin as investors and traders look for a safe haven amid economic uncertainty and inflation concerns. The king coin was worth $24,038.