Rekt Capital, a top-notch analyst renowned for his insights on Twitter, recently shared his observations on Bitcoin’s dominance in the cryptocurrency market. He pointed out that Bitcoin’s dominance is currently undergoing a retest within a specific red zone.
This phase of retesting might be nearing its end, suggesting that Bitcoin’s dominance could soon be on the rise again. An increase in Bitcoin’s dominance typically indicates a decrease in the value of other cryptocurrencies, commonly referred to as altcoins.
Therefore, if Bitcoin’s dominance continues to surge, it could negatively impact the valuations of altcoins.
In a subsequent tweet, the well-known trader posed an intriguing question: What if Bitcoin’s dominance is shaping up to form a Bull Flag? This technical pattern often signals a potential upward breakout. If Bitcoin’s dominance does break out from this Bull Flag formation, it could spell trouble for altcoins. Such a breakout would likely be detrimental to their value.
Furthermore, Rekt Capital highlighted the significance of Bitcoin’s monthly close price. If Bitcoin closes the month around the $29,250 mark, it would solidify this price point as a resistance level. This could potentially lead to a downward trend for Bitcoin. However, it’s essential to note that the monthly close price can fluctuate due to the inherent volatility associated with this price level.
As we approach the end of August, the expert trader emphasized that Bitcoin hasn’t provided enough evidence to counter the possibility of a Double Top formation. A Double Top is a bearish reversal pattern, and its invalidation would be crucial for Bitcoin’s future price trajectory.
You can view our Bitcoin price prediction here.
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