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Bitcoin Dominance Chart Shows Bullish Momentum, Hints New Highs

Published 15/09/2023, 12:33
© Reuters.  Bitcoin Dominance Chart Shows Bullish Momentum, Hints New Highs
BTC/USD
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  • Benjamin Cowen has observed a unique pattern on the Bitcoin Dominance chart.
  • Cowen showed that breakouts on the Bitcoin Dominance backtest previous trendlines.
  • Each breakout and backtest is followed by a big move to new highs.

Benjamin Cowen, founder of Into The Cryptoverse, has observed a unique pattern on the Bitcoin Dominance chart. In a recent post, Cowen revealed that each prior breakout on the Bitcoin Dominance daily chart had a backtest of the trendline, followed by a big move to new highs.

Cowen considers this pattern an interesting trend. Another X app user identified as Zino spotted an additional feature. Zino noted that the Bitcoin Dominance is so strong that it doesn’t retest the breakouts whenever they happen.

According to Santiment, the market intelligence platform with on-chain and social metrics, on Thursday, September 14, Bitcoin experienced the highest Profit vs. Loss ratio in two months. The analytics platform revealed that the flagship crypto continued to see 5-month high levels of unique wallet activities.

Santiment noted an average of 1.1 million wallet addresses sent and received Bitcoins daily in the last five months. It also revealed that by rallying 5% over the past three days, profit-taking by traders on the Bitcoin network reached a 2-month high today.

Using a screenshot, Santiment showed that the active Bitcoin addresses metric has been high since April. Additionally, it revealed how the recent price rebound caused many traders to move their Bitcoins at small profits. That could have been motivated by the lack of relative volatility currently in the Bitcoin market. Hence, traders take advantage of every rally, no matter how small.

Bitcoin bounced off a local low at $24,920 and has since delivered consecutive profits in the past three days. The pioneer cryptocurrency has made a cumulative gain of 7.75% since it bounced off the local low. After reaching $26,849 yesterday, BTC retraced and closed at $26,529, according to data from TradingView. Bitcoin traded for $26,588 at the time of writing, having resumed the upward movement.

The post Bitcoin Dominance Chart Shows Bullish Momentum, Hints New Highs appeared first on Coin Edition.

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