Bitcoin Dominance Soars to 65%: Altcoins Lag as BTC Hits $118K
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Bitcoin's price surge to nearly $118,800 marks a new bull market chapter, exceeding previous all-time highs. This breakout is accompanied by a significant rise in Bitcoin dominance, reaching 65% according to analyst On-Chain Mind, up from 40% at the bull market's start. This dominance highlights investor preference for Bitcoin over altcoins, solidifying its role as a market anchor during volatility. The breakout is seen as potentially triggering institutional investment and renewed retail investor interest. Analysts predict this could be the beginning of a larger move defining the next phase of the 2025 crypto bull cycle. While altcoins are showing signs of recovery, following Bitcoin's lead above key resistance levels, Bitcoin's dominance remains strong. This surge is partly attributed to macroeconomic factors, including expectations of a weakening US dollar and potential rate cuts, making Bitcoin an attractive hedge against traditional financial system uncertainties. Bitcoin's 4-hour chart displays a classic breakout followed by consolidation, showing a surge from $109,300 to $118,000 in under 12 hours, an 8% rally. The decreased volume post-breakout suggests bullish consolidation. Technical indicators like the golden cross (50-period MA above 100-period MA) further support a bullish outlook. However, maintaining a price above $112,000 is crucial to sustain the bullish momentum; falling below $109,000 could invalidate the breakout. Breaking above $118,000 could propel Bitcoin towards $120,000.
