At the moment, the Bitcoin chart shows an interesting situation: the price failed to close below $66,770, but also failed to consolidate above $69,000. These key zones are now forming short-term boundaries for the BTC price, creating uncertainty for market participants.
Important observations:
1. Lack of stablecoins on exchanges. This is one of the key signals that shows that there is no active influx of liquidity into the cryptocurrency market. Stablecoins are often used as "dry powder" for asset purchases, and their shortage may indicate that new participants are in no hurry to enter the market at current levels.
2. Bitcoin Dominance Rising: Despite the lack of significant volume, BTC dominance continues to rise. This could mean that traders and investors have started shifting funds away from altcoins to support Bitcoin’s current price levels. Altcoins often suffer when BTC dominance rises, which could also explain some of the weakness in alternative assets.
How is this different from the usual situation?
Unlike a "normal" market cycle where high BTC dominance is accompanied by an influx of stablecoins, we are now seeing more of a defensive strategy - alts are being sold to hold the price of Bitcoin at levels around $67,000-$69,000. This creates a tense market situation where every attempt to breakout is met with resistance.
What to do?
Waiting is the key strategy at the moment. In such moments, rushing into purchases can lead to losses, especially if the market starts to correct sharply. We see that the current situation is different from the average: sharp movements in both directions are possible.
The best plan is to watch price action in these important areas and act only on clearer signals.
