Bitcoin Holds Steady at $96K as Market Awaits Direction

Bitcoin holds steady at $96K as Bitcoin Dominance weakens, altcoins show signs of recovery, but liquidation risks remain high.

Azcnews Breaking Bitcoin Holds Steady At $96k As Market Awaits Direction

Bitcoin is currently trading around $96,000, showing little volatility over the past 24 hours. Meanwhile, Bitcoin Dominance (BTC.D) is forming a bearish divergence, signaling a weakening market share of Bitcoin relative to the total cryptocurrency market capitalization.

However, the Relative Strength Index (RSI) has yet to issue a sell signal, indicating that momentum has not fully shifted to a bearish trend.

BTC.D surged 5% in early February after the market tumbled due to Trump’s tariff stance, wiping out over $420 billion from the crypto market cap. As panic spread, Bitcoin held its ground while altcoins collapsed, with most high-cap altcoins hitting new lows against BTC.

Historically, periods of Bitcoin consolidation have often triggered altcoin rallies. In Q2 last year, when BTC fluctuated between $60,000 and $70,000, Ethereum posted its largest daily green candle, soaring 19% in a single day.

Market Cap Btc Dominance
Market Cap Btc Dominance

With high-cap altcoins already showing gains this week, a similar trend may be unfolding. Futures traders should exercise caution as bullish sentiment rises, with an increasing number of leveraged long positions.

However, the ongoing bearish divergence suggests billions of dollars could be at risk of liquidation in the coming days, potentially setting the stage for a sharp price correction.

This February, Bitcoin has shed over $1 trillion in market capitalization, dropping from a peak of $2.1 trillion at the end of January. As market sentiment sinks into fear, the likelihood of a BTC recovery remains distant.

If Bitcoin dominance declines further, we could see the Fear & Greed Index plunge into “extreme fear” territory, increasing the risk of panic selling. This will be a critical factor to watch in the coming days.

For now, the market is seeing a slight uptick, with momentum remaining neutral. RSI has not fully flipped bearish, leaving room for a potential reversal.

However, to prevent RSI from hitting lower levels, closely monitoring the futures market is essential, as it poses the greatest threat to Bitcoin’s dominance.

Love

0.0/5

Love

Latest

Notable Token Unlocks In June 2025

Altcoin | Editor Choice

Notable Token Unlocks in June 2025

There is $1 billion worth of tokens set to be unlocked this June, notably including Sui (SUI), Fasttoken (FTN), and LayerZero (ZRO).

Bitcoin Rebounds After Correction, Surpasses $105,000

News | Bitcoin | Editor Choice

Bitcoin Rebounds After Correction, Surpasses $105,000

After a period of correction, Bitcoin has rebounded and surpassed the $105,000 mark, as experts warn of technical divergence signals and key support zones gradually taking shape.

Crypto Trader James Wynn Loses $99 Million In A Week

News | Altcoin | Editor Choice

Crypto Trader James Wynn Loses $99 Million in a Week

Crypto trader James Wynn lost $99 million in just one week due to failed Bitcoin bets, while another trader made $17 million by taking the opposite positions.

Most Ethereum Etf Investors Deep In The Red

News | Altcoin | Editor Choice

Most Ethereum ETF Investors Deep in the Red

Most investors in BlackRock and Fidelity’s Ethereum ETFs are suffering heavy losses as Ether’s price falls well below their entry levels, amid volatility driven by former President Trump’s trade policies.

Trading Volume On Pancakeswap Reaches $138 Billion, Surpassing Uniswap

Altcoin | Editor Choice

Trading Volume on PancakeSwap Reaches $138 Billion, Surpassing Uniswap

Thanks to strong support from CZ and Binance exchange, PancakeSwap's trading volume in May reached $138 billion, far surpassing Uniswap.