- BTC dominance breaks long-term support, triggering altcoin breakout signals
- Bitwise confirms countries discussing Bitcoin for sovereign reserve inclusion.
- Institutional demand surpasses supply, creating ongoing upward price pressure.
Bitcoin dominance has broken below a long-standing rising trendline, raising expectations of a potential altcoin rally. World of Charts, BTC dominance broke below a key trendline on July 21.
The chart had previously shown dominance with respect to an ascending structure for months. After rallying and correcting near the upper trendline, the index reached support and failed to hold.
If sustained, the breakdown may open the door for a broader altcoin rally. Analysts have cautioned traders to wait for a confirmed breakout before using leverage.
Historical data shows previous breakdowns in BTC dominance preceded notable altcoin surges. The pattern has increased speculation that a fresh altseason could begin if Bitcoin dominance fails to recover.
Multiple Countries Reportedly Exploring Bitcoin for Reserves
Bitwise CIO revealed to Blockworks that several countries are in talks to acquire Bitcoin for national reserves. The asset manager, which oversees $5 billion in assets, reported ongoing discussions with unnamed sovereign entities.
This shift could reflect a change in traditional reserve strategies, aligning more with digital assets.
Bitwise also reported that institutional BTC demand has risen sharply in 2024. Institutions have accumulated over 545,579 BTC, compared to a supply of only 97,082 BTC.
With Bitcoin’s capped supply at 21 million, this imbalance continues to highlight limited availability amid rising demand. The trend could impact Bitcoin’s price trajectory if the supply-demand gap widens further.
Market Momentum Builds as Bitcoin Trades Above Key Support
At the time of writing, Bitcoin is currently priced at $116,591.76, showing a 1.36% daily gain.
Price action reveals strong bullish sentiment, with support at $115,000 and resistance around $117,500. The current chart structure shows Bitcoin holding firm above support while testing resistance.
Galaxy Digital CEO Mike Novogratz commented on the potential market impact of former President Trump’s new executive order
He suggested the move could unleash a “monster pool of capital” into Bitcoin and digital assets. Increased institutional activity may further fuel positive momentum across the broader crypto market.
Market analyst Tom Lee projected Bitcoin’s value to reach between $200,000 and $250,000 by year-end and could eventually reach $1 million.
Lee based his outlook on market structure and momentum, reflecting continued confidence in the asset’s long-term trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
