Bitcoin Dominance Faces Major Resistance at 57.30%: Bearish Divergence Insights

Bitcoin dominance appears to be signaling a significant market shift, indicated by a bearish divergence on the dominance chart. This divergence suggests that Bitcoin’s dominance might be poised for a reversal. According to Michaël van de Poppe, CIO & Founder of MN Trading, a key level to watch is 0.06, with the monthly candle revealing market inefficiencies and the weekly candle sweeping liquidity, aiming to fill orders around the 50% mark of the monthly candle. 

As reported by Crypto Tale, the critical move may emerge from below the 50% D-POI, especially if ETH/BTC can break through crucial levels. Michaël van de Poppe chart displays Bitcoin’s dominance percentage over time, highlighting an overall uptrend from mid-2022 to mid-2023, followed by a period of consolidation. 

The major resistance level is around 57.30%, where Bitcoin dominance has repeatedly tested but failed to break through convincingly. Immediate support lies around 54.52%, which is the current level per the chart. Additionally, another potential support level is around the 50% mark, considering past consolidations and reactions at that level.

Volume analysis reveals relatively stable levels with occasional spikes. These spikes correspond to significant movements in dominance, indicating strong buying or selling interest during those periods. Pattern recognition shows a clear formation of lower highs near the resistance zone, suggesting a potential bearish divergence. This bearish outlook is further supported by the declining RSI (Relative Strength Index) at the top of the chart, indicating weakening momentum and a higher probability of a bearish move.

The observed bearish divergence, characterized by lower highs near resistance and a declining RSI, suggests weakening momentum. The resistance zone around 57.30% has proven to be a strong barrier that Bitcoin dominance has struggled to surpass. Immediate support at 54.52% is crucial. If this level fails to hold, the next significant support is around 50%.

As at press time, the live Bitcoin price is $60,851.34, with a 24-hour trading volume of $22,604,017,409. Bitcoin has dropped 3.37% in the last 24 hours, reflecting broader market sentiments.