Bitcoin is attempting to breach the critical barrier at $106,000, aiming to rally and set a new all-time high (ATH).
Despite recent volatility, BTC’s bullish momentum remains strong, and the cryptocurrency appears to be repeating historical patterns observed during prior market cycles.
Bitcoin Is Not In Danger
The Mayer Multiple indicator shows Bitcoin is neither overbought nor oversold, currently positioned at a neutral level. This signals that the ongoing bullish momentum could continue, providing room for the price to rise further without facing immediate correction. Such neutrality in market sentiment is a promising sign for Bitcoin enthusiasts.
The indicator’s neutral stance suggests stability, with buyers and sellers maintaining equilibrium. This balance, paired with Bitcoin’s bullish trend, indicates that the cryptocurrency could gather sufficient momentum to breach key resistance levels and potentially target a new ATH in the near term.
Bitcoin’s dominance in the cryptocurrency market is following a 4-year pattern, providing insights into its macro momentum. After bottoming at 54% in December 2024, Bitcoin dominance has surged past 57% in January 2025. This pattern mirrors the 2020 cycle, where dominance bottomed at 60% in November 2020 and climbed to 69% by January 2021.
The resurgence in Bitcoin’s dominance highlights its strengthening position as the market leader. Similar to the 2020 cycle, this trend indicates a potential rally in Bitcoin’s price. This is because increased dominance typically aligns with a bullish phase for the cryptocurrency.
