Bitcoin Dominance Returns to the 64% to 70% Range

Bitcoin has followed a trajectory close to its historical average in July. Market analyst Daan Crypto Trades noted that the third quarter is the weakest period for Bitcoin in the year, with average returns remaining around 6%. This period is typically associated with declining trading volumes and weakening liquidity during the summer months. BTC has retraced to the demand zone between $55,000 and $70,000. This range has served as resistance since 2021 and will play a support role after the breakout in 2024. Technical indicators suggest a potential reversal. Analyst Chris pointed out a negative divergence in the weekly Relative Strength Index (RSI). While Bitcoin prices are making lower lows, the rising RSI could indicate a market structure that is beginning to lose downward momentum. Bitcoin dominance has returned to the 64% to 70% range, which has previously emerged as a peak area in earlier cycles. Strong rallies in altcoins were observed following rejections from this zone in 2018 and 2021. Analysts believe that if the 70% resistance cannot be surpassed, interest in altcoins may increase. A strong directional change within the current Bitcoin trading cycle is on the agenda.

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