Bitcoin dominance is on track to reach a new high, with predictions suggesting it is approaching a key resistance area, according to Michaël van de Poppe, CIO and Founder of MN Trading Consultancy.
#Bitcoin dominance is going to hit a new high, through which it’s also approaching the resistance area.
No confirmation of an actual resistance, but given the current uncertainty on the boards, we’re likely going to be hitting it in the final capitulation. pic.twitter.com/gjovLQ2SGw
— Michaël van de Poppe (@CryptoMichNL) August 3, 2024
Bitcoin Faces Potential Resistance Amid Market Volatility
Bitcoin dominance is calculated by dividing the total cryptocurrency market capitalization with the market cap of Bitcoin. From the analysis by Van de Poppe, it is evident that in the future, Bitcoin will be faced with a key level of resistance, which may slow down the price of Bitcoin.
At the moment, one cannot speak about any clearly defined level of resistance. However, as seen in the market volatility, there might be intervention or resistance level for BTC soon. This could potentially happen during a final capitulation. This may force the investors to sell holdings, a move that might decline the price.
Resistance Levels Crucial for Bitcoin’s Price Trends, Says Analyst
Identification of resistance levels is vital as it assist in illustrating whether the price may continue to rise or experience some rejections. It is also important to find out how Bitcoin will act in the short term if it comes to this resistance level.
Lastly, Van de Poppe conveys the idea that there is uncertainty in the market, and that the market does not know what to expect. However, constant dominance of BTC in the total market may lead to shifts in the market. Market participants are waiting to these changes to see not only the future of Bitcoin but also the rest of the decentralized financial industry.