- Bitcoin is testing key support at $96,700, with a potential rebound if it holds after recent price dips.
- The Fear & Greed Index remains neutral, suggesting slow market movement and a possible Bitcoin price recovery.
- As Bitcoin dominance increases, altcoins face downward pressure, with investors focusing more on Bitcoin.
Bitcoin is on the verge of testing support at $96,700, and if it does, it could bounce back after the minor drop in its value. CryptoQuant revealed that the crucial level is also the average price at which short-term investors bought, making it an important level for traders to observe. If this level is sustained, the latest decline may be over, and a recovery period could start.
The Fear & Greed Index is at a neutral value, indicating that the market does not currently exhibit high levels of optimism. The cryptocurrency market appears to be quiet, lacking signs of aggressive buying, which is typically associated with price surges. Since buying is slow, Bitcoin’s price could move more calmly and a return above the $96,700 support is expected. Investors have the opportunity to use this pattern to invest right as the price heads upward after a dip.
Source: X
Bitcoin Dominance Rising
The cryptocurrency market is closely watching how Bitcoin behaves near its support level at $96,700. If the price doesn’t drop and continues to increase, it could mean Bitcoin is regaining strength after its recent drop. After recovering, investors could feel more secure about getting back into the market. However, if the price continues to drop after this level, it could indicate that there are more dips to come before it recovers.
Alternative coins, including Ethereum, are losing strength due to the increased dominance of Bitcoin. As Bitcoin Dominance goes up, investors tend to shift away from altcoins and focus more on BTC. The trend indicates that altcoins may not do well when BTC goes down, since their prices usually move in sync with BTC market.
As of press time, BTC is trading at $105,244, and the trading volume for the past 24 hours is approximately $23.43 billion. While BTC gained 0.87% in the last day, it has lost 4.05% over the last week.
Market Stabilization Signals
Investors should not panic and regularly look for signs that the market may be stabilizing. After the correction phase ends and liquidity comes back, there might be chances to take new positions. Nevertheless, as long as the signals of recovery remain unclear, it is better not to rush into risky decisions, since volatility still affects the market.
BTC movement next will likely be determined by its $96,700 support. While waiting for a rebound, investors are advised to monitor the market and be prepared to enter it when the correction finishes.
Related Reading | Ethereum’s Critical Support Zones: Will $2,400 Hold or Lead to Further Losses?