Bitcoin Price Tests $117K Support as Dominance Slips to 59%

Key Insights:

• Bitcoin price is struggling at the $117,000, adding bearish pressure to the coin’s market value.
• Bitcoin dominance has dropped to 59%, igniting speculations about an imminent altcoin season.
• The coin’s Bull Score Index drops from 80 to 60, suggesting a period of short-term consolidation.

Bitcoin (BTC) price is currently at a crucial juncture, with key support and dominance.

While momentum for BTC price remained high, the leading coin is still struggling to find balance at the $117,000 support.

At the same time, Bitcoin dominance decreased, leading to skepticism among traders and investors.

Market Watch the $117,000 Support

At press time, the Bitcoin price has experienced a slight increase of 1.07% in the last 24 hours. According to CoinMarketCap data, BTC is priced at $116,896.

The leading cryptocurrency has remained relatively flat since the beginning of the week. Within 7 days, BTC surged only 3% and 5.6% over the past month.

The BTC price remained between $115,697 $120,998 since July 14. Since hitting an all-time high of $123,231, BTC remained in a tight consolidation phase.

Bitcoin lost key support levels that enabled it to continue its uptrend. The coin is now battling support at $117,000. This level could determine BTC’s price in the short term.

Bitcoin may likely witness increased volatility if it falls below $111,700. On the contrary, the coin may experience a rebound if the price holds above this support.

Another key metric to watch is the trading volume. Over the previous day, BTC trading volume has decreased by 11.6% to $53.4 billion.

While volatility remains a factor, the spot Bitcoin exchange-traded fund (ETF) market is still experiencing persistent inflows.

As revealed by Farside Investors, the spot BTC ETFs saw inflows for three consecutive days.

On August 6, the ETFs saw inflows of $91.6 million. By August 7 and 8, funds that flowed into the market reached $227.4 million and $403.9 million, respectively.

Bitcoin Dominance Keeps Dropping

Meanwhile, Bitcoin is struggling to increase its market share. Crypto analyst Dan Gambardello noted that BTC dominance has dropped to 59%.

This decline has raised speculations about the arrival of a potential altcoin season.

“We’ll see soon if this altcoin breakout plays out differently than November 2024 or if it’s just another altcoin season fakeout,” says Gambardello.

Another analyst ZYN on X, highlighted that Bitcoin dominance has lost its EMA-50 level. The analyst pointed out that when this happened in Q4 2024, it turned out to be an altcoin season fakeout.

ZYN thinks Bitcoin dominance has peaked in the current market cycle. Still, he noted that a weekly close below EMA-50 is needed for more confirmation.

Bitcoin Price: Key Accumulation Triggers to Watch

In an X post, Julio Moreno said the Bitcoin price has entered a “Bullish Cooldown” phase. Unless new catalysts emerge, the cooldown phase suggests a period of short-term consolidation or mild downside risk.

The “Bull Score Index” evidenced the cooldown phase, which declined from 80 to 60. While conditions remain positive, momentum has softened.

According to the CryptoQuant analyst, several factors have contributed to the BTC cooldown. These include a slowdown in stablecoin liquidity, profit-taking by traders, and reduced network activity.

Another factor that played a role is declining Bitcoin inflows into Coinbase from other exchanges. These factors all indicate a short-term dip in investor appetite.

Furthermore, the MVRV indicator has moved close to the bull-bear threshold. Thus, a further price decline could push the metric into the negative zone.

The Bull Score Index may fall below 40 if this decline holds. This would be the first time since April 2023.

Overall, the fading BTC momentum hints at price consolidation or mild correction in the near term. Still, some market players believe BTC price could hit $150,000 if the Federal Reserve decides to cut rates in September.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.