Dacity Coin
Injective
NEAR Protocol
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Bitcoin
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Sui
Key Insights:
- Bitcoin dominance rebounds to 57%, with indicators pointing to a potential bullish rally.
- Institutional interest grows as large Bitcoin transactions over $100K double to 32,320 in just one week.
Bitcoin (BTC) has achieved a significant milestone, as Bitcoin dominance rebounds from 54% to 57% this month. According to Glassnode, the same trend happened with the 2020 cycle, bottoming out at ~60% in November 2020 and climbing to 69% in January 2021.
History shows that Bitcoin starts an extended upward trend whenever its dominance crosses this threshold mark.
With a recent breakout above the $100k mark, BTC market share continued to see bullish swings in the last few sessions. At press time, Bitcoin price was trading at $104,983, noting a rise of over 0.70% in the past 24 hours.
On-Chain Data Suggests a Potential Market Top
According to CryptoQuant data, the Index of Bitcoin Cycle (IBCI) has entered the distribution area for the first time since eight months ago. Several core metrics including Puell Multiple and MVRV along with NUPL and SOPR show that the market is approaching its cyclical peak.
This data indicates that the current reading of IBCI is beneath the 100% threshold which indicates potential growth, yet investors need to exercise extreme caution.
The NUPL indicator shows steady movement toward the upper limit, while the Puell Multiple approaches its lower limit, creating mixed signals.
Bitcoin See Uptick in Large Transactions as Institutions Step in
According to prominent crypto analyst Ali Martinez, large transactions worth $100000 or more have experienced a two fold increase. He reported that these transactions increased from 15620 to 32320 during the past week.
On January 20, Bitcoin transactions achieved a seven-day peak of 30,320 as the coin price approached $105k.
These spikes in large transactions demonstrate rising involvement from institutional investors alongside high net worth individuals. In fact, such activity usually precedes a major market movement, by allowing large players to position themselves in anticipation of a price surge.
Is Bitcoin Ready to Usher in the Next Bull Rally?
With Bitcoin dominance rebounding to 57%, strong on-chain metrics and bullish technical indicators aligning. Bitcoin may be gearing up for another bull rally soon.
At press time, Bitcoin price had maintained the upward momentum around $105k and was persisting in forming the higher high swings.
With Bitcoin’s exchange reserve continuing to decline from the higher levels, it conveyed that long-term holders were were looking confident.
Furthermore, Bitcoin’s network activity continued to show significant growth, as active addresses witnessed a 2.30% uptic in the last seven days.
Bitcoin’s daily RSI line was at 60 at press time, reflecting a positive market condition, with significant room for growth ahead. However, BTC price remained close to the upper Bollinger band, which often signals potential upward price volatility.
However, Bitcoin price must defend $100k mark on the downside in case of pullbacks. Meanwhile, a break above the $110k mark could pave the way toward $115k and $120k in the short term.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of monetary loss.
