With Bitcoin (BTC) back to its sideways trading trend following a brief trip into the lower $25,000s, chart patterns suggest that the flagship decentralized finance (DeFi) asset could soon break out of its dominance downtrend, which could trigger a rally.
As it happens, Bitcoin dominance breaking its local downtrend while maintaining its higher timeframe uptrend is a bullish sign that has previously signaled the beginning of an upward impulse for the maiden digital asset, as observed by pseudonymous cryptocurrency analyst CredibleCrypto on September 12.
According to the crypto expert, “five days after BTC dominance broke its local downtrend, price followed suit with the next impulsive leg, which was a $7,000 move,” which, next to Bitcoin maintaining a bullish structure and support at $24,800, is “a decent argument (…) that our next impulse is just around the corner.”
On top of this optimistic structure, Bitcoin also seems to be on the path toward a rally in the longer term, at least when taking into account the previous market cycles in which a downtrend followed a previous top, only to be followed by an accumulation range, recovery, and a bullish rally, as noted by CryptoYoddha.
Bitcoin price analysis
As things stand, Bitcoin is currently changing hands at the price of $25,812, demonstrating an increase of 0.39% in the last 24 hours, as well as a weekly gain of 0.55% while still recording losses of 12.15% on its monthly chart, according to the latest data on September 12.
Meanwhile, a crypto analyst CrypNuevo has predicted a “fake pump” for the largest cryptocurrency by market capitalization, set to precede a massive liquidation event that could potentially see Bitcoin plummeting to below $24,000, as Finbold reported on September 11,
At the same time, Bitcoin added more than 700,000 new wallet addresses in a single day – on September 9 – the most since December 14, 2017 when it added 800,000 fresh addresses, which suggests growing investor interest and could support the argument that at least a short-term bullish rally is, indeed, close at hand.
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