Bitcoin price consolidates for eight days as dominance surges to 64%
Bitcoin consolidates between $95K and $100K as RSI signals bearish momentum.
Bitcoin's price remains trapped in a tight range between $95,000 and $100,000, marking eight days of consolidation after a sharp rejection from the 50-day EMA at $98,200.
The price drop tested the $95,000 support level, a key floor that has so far held firm despite weakening momentum. Meanwhile, Bitcoin dominance (BTC.D) has surged above 64%, its highest level since March 2021, reflecting a shift in market behavior. Unlike previous cycles where altcoins would follow Bitcoin’s initial rally, institutional and long-term holders are driving capital into Bitcoin exclusively.
Bitcoin dominance climbing to 64% is a major deviation from previous cycles. Historically, Bitcoin's price surges were followed by capital rotation into altcoins, leading to a decline in dominance. This time, that pattern appears to have broken. Institutional players, sovereign entities, and long-term holders are leading the charge, allocating capital primarily to Bitcoin while largely sidelining altcoins.
Bitcoin price outlook weakened by RSI in bearish territory
In the short term, Bitcoin’s latest rejection from the 50-day EMA at $98,200 triggered a downturn that brought the relative strength index (RSI) from strength to weakness.
Bitcoin price dynamics (January 2025-February 2025). Source: TradingView
Currently, RSI remains in bearish territory on both the daily and four-hour charts, increasing the likelihood of further downside pressure. During the Asian session, Bitcoin saw limited price movement, and in the European session, it is hovering near $95,850, testing the resilience of the $95,000 support level.
If Bitcoin breaks below $95,000, it could trigger a deeper correction, further pressuring sentiment. On the upside, a recovery above the 50-day EMA at $98,200 would shift momentum in favour of buyers, potentially targeting the $100,000 mark. The next few sessions will be critical in determining whether Bitcoin can sustain its dominance-driven rally or if downside risks take hold.
Bitcoin price consolidates within a tight 5% range below $100k for the past six days. Bitcoin’s leverage ratio and broader market signals cast doubt on an immediate breakout.
