{"id":19848,"date":"2025-05-05T07:00:37","date_gmt":"2025-05-05T07:00:37","guid":{"rendered":"https:\/\/gold.creditcard\/btc-dominance-due-collapse-at-71-5-things-to-know-in-bitcoin-this-week\/"},"modified":"2025-05-05T07:00:37","modified_gmt":"2025-05-05T07:00:37","slug":"btc-dominance-due-collapse-at-71-5-things-to-know-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/gold.creditcard\/es\/btc-dominance-due-collapse-at-71-5-things-to-know-in-bitcoin-this-week\/","title":{"rendered":"BTC dominance due 'collapse' at 71%: 5 things to know in Bitcoin this week"},"content":{"rendered":"

Bitcoin (BTC<\/a>) starts the first full week of May with yearly open support in focus ahead of a key US economic policy decision.<\/p>\n

BTC price action attempts to hold the yearly open as support after some downside at the weekly close, but bullish perspectives remain intact.<\/p>\n

The US Federal Reserve interest rate decision is the key macro event of the week, with Chair Jerome Powell tipped to \u201cmove markets.\u201d<\/p>\n

Jobless claims and Coinbase earnings add to a mixed bag of potential volatility triggers as recession talk gets louder.<\/p>\n

Bitcoin dominance hits 65% for the first time in over four years, but analysis thinks its days are numbered.<\/p>\n

Bitcoin \u201cFOMO\u201d is still waiting in the wings as sentiment flips positive.<\/p>\n

Bitcoin traders stay bullish with $93,500 intact<\/h2>\n

Bitcoin saw some sell pressure into the May 4 weekly close, reaching lows of $93,350 on Bitstamp before rebounding, data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> shows.<\/p>\n

BTC\/USD 1-hour chart. Source: Cointelegraph\/TradingView<\/em><\/p>\n

Liquidity had built up close to the spot price, both up and down, with bids getting partially filled due to the dip.<\/p>\n

Now, the latest data from monitoring resource CoinGlass<\/a> shows the largest nearby cluster of ask liquidity at $96,420.<\/p>\n

BTC liquidation heatmap (screenshot). Source: CoinGlass<\/em><\/p>\n

Popular trader CrypNuevo outlined a potential short-term bull case in his latest outlook on X.<\/p>\n

\u201cIn the case of long triggers, I like these two setups: Either a new local high ($98k) where we can see some LTF liquidations after a reclaim of the previous range highs (upper yellow line), or from much lower from the 1D50EMA retest if it’s successful,\u201d he wrote.<\/p>\n

BTC\/USDT 4-hour chart. Source: CrypNuevo\/X<\/em><\/p>\n

Fellow trader Daan Crypto Trades eyed a new \u201cgap\u201d to the upside on CME Group\u2019s Bitcoin futures markets as a potential price magnet.<\/p>\n

\u201cThese gaps have generally been getting closed within 1-3 days recently so it can be useful to keep an eye on it,\u201d part of an X post read<\/a>, with the gap at $97,000.<\/p>\n

BTC\/USDT 15-minute chart. Source: Daan Crypto Trades\/X<\/em><\/p>\n

Zooming out, however, popular trader and analyst Rekt Capital focused on downside support at $93,500 \u2014 Bitcoin\u2019s yearly open.<\/p>\n

\u201cBitcoin has rejected from the Lower High resistance (black diagonal),\u201d he explained<\/a> alongside an accompanying weekly BTC\/USD chart.<\/p>\n

\u201cGoing forward, Bitcoin will need to hold the $93.5k Range Low to fully confirm a reclaim of the Range.\u201dBTC\/USD 1-week chart. Source: Rekt Capital\/X<\/em><\/p>\n

Separate analysis suggested<\/a> that Bitcoin could form a series of higher highs with rejections and support retests at key price points, ultimately breaking out to new all-time highs.<\/p>\n

#BTC<\/a><\/p>\n

Bitcoin Price Discovery Roadmap<\/p>\n

Bitcoin is trying to finalise its First Price Discovery Correction (green) to transition into its Second Price Discovery Uptrend (red)<\/p>\n

(Prices and time horizons are not to scale)$BTC<\/a> #Crypto<\/a> #Bitcoin<\/a> https:\/\/t.co\/yfY3h60Ywy<\/a> pic.twitter.com\/yahXUIpVkY<\/a><\/p>\n

\u2014 Rekt Capital (@rektcapital) April 30, 2025<\/a><\/p>\n

FOMC week puts spotlight on Fed<\/h2>\n

In contrast to last week, the coming days are dominated by one macroeconomic event in particular: the Federal Reserve decision on interest rates.<\/p>\n

The May 7 meeting of the Federal Open Market Committee (FOMC) is being closely watched by traders in crypto and beyond.<\/p>\n

The circumstances surrounding the meeting are unusual \u2014 the Fed remains hawkish on the economy, seeking to hold rates steady in the face of rising economic risks and talk of recession<\/a>. The ongoing US trade war has added to concerns that inflationary pressures may return, bolstering the Fed\u2019s stance.<\/p>\n

Despite this, US President Donald Trump has been vocal about the need for rates to come down, personally singling out<\/a> Fed Chair Jerome Powell on social media on several occasions.<\/p>\n

What happens at the meeting will thus form a clear signal over what traders can expect further into the year.<\/p>\n

\ud83c\uddfa\ud83c\uddf8 FOMC: This Wednesday, the Fed will decide whether to cut, hike, or keep rates unchanged.<\/p>\n

What\u2019s your prediction? \ud83d\udc47 pic.twitter.com\/cUkhGyHdIR<\/a><\/p>\n

\u2014 Cointelegraph (@Cointelegraph) May 5, 2025<\/a><\/p>\n

\u201cAll eyes are on Fed Chair Powell this week after recent pressure from Trump to cut rates,\u201d trading resource The Kobeissi Letter summarized<\/a> on X.<\/p>\n

While tensions over the decision are palpable, markets nonetheless see little chance of a surprise move by officials. The latest data from CME Group\u2019s FedWatch Tool<\/a> put the odds of a rate cut at just 5.2% as of May 5.<\/p>\n

Fed target rate probabilities for May 7 FOMC meeting. Source: CME Group<\/em><\/p>\n

Over the weekend, Cointelegraph reported<\/a> on expectations regarding Bitcoin\u2019s reaction to the meeting. In general, crypto and stocks tend to fall in advance of FOMC dates as traders hedge their bets over the outcome and the Fed\u2019s perspective on future policy.<\/p>\n

\u201cIf a standard pre-FOMC correction takes place, then the go-to zone for entries is between $91.5-92.5K,\u201d crypto trader, analyst and entrepreneur Micha\u00ebl van de Poppe told<\/a> X followers in part of a recent post on the topic.<\/p>\n

BTC\/USDT chart. Source: Micha\u00ebl van de Poppe\/X<\/em><\/p>\n

Trading resource Material Indicators added<\/a> that Powell\u2019s language at the FOMC press conference would \u201cmove markets\u201d regardless of the rate decision.<\/p>\n

Bitcoin faces booming recession bets<\/h2>\n

Beyond FOMC, other macro topics on the radar for crypto and risk assets include the initial jobless claims report on May 8, as well as earnings from major US crypto exchange Coinbase.<\/p>\n

Bitcoin has become increasingly sensitive<\/a> to US employment data in recent months, making a major divergence from expectations a potential source of volatility.<\/p>\n

While the labor market has stayed resilient to threats such as the ongoing US trade war, reports of the economy entering a period of \u201cstagflation\u201d or even recession are increasing.<\/p>\n

\u201cUS consumers’ recession expectations are skyrocketing: Americans\u2019 perceived likelihood of a US recession over the next 12 months rose to 72% in April, the highest in 2 years. Since November 2024, this percentage has surged by 8 points,\u201d Kobeissi noted<\/a>.<\/p>\n

Data from other consumer sources, such as prediction service Kalshi, echoes that sentiment.<\/p>\n

Source: <\/em>Kalshi<\/em><\/a><\/p>\n

\u201cSuch a pessimistic view of the economy and financial situation will likely lead to more pullback in consumer spending,\u201d Kobeissi concluded.\u00a0<\/p>\n

\u201cAll signs point to an economic slowdown.\u201dUS consumer recession expectations. Source: The Kobeissi Letter\/X<\/em><\/p>\n

In the latest edition of its regular newsletter, \u201cThe Market Mosaic<\/a>\u201d on May 4, trading firm Mosaic Asset referenced last week\u2019s Q1 GDP miss as \u201cthe latest sign that tariffs and trade wars are delivering a major hit to the economy.\u201d<\/p>\n

\u201cEvidence that the economy is holding up against the turmoil and uncertainty caused by trade war headlines is helping the S&P 500 to recover most of the selloff following the announcement of reciprocal tariffs,\u201d it nonetheless acknowledged.<\/p>\n

Since Trump\u2019s tariff-driven \u201cLiberation Day<\/a>\u201d on April 2, Bitcoin is up by around 15%.<\/p>\n

Bitcoin dominance starts \u201cfinal countdown\u201d<\/h2>\n

In crypto circles, anticipation of the genuine start of the next altcoin rally is increasing.<\/p>\n

Bitcoin\u2019s share of the total crypto market cap reached 65% over the weekend, marking its highest level since early 2021.<\/p>\n

Bitcoin crypto market cap dominance 1-week chart. Source: Cointelegraph\/TradingView<\/em><\/p>\n

The rapid dominance increase over the past two years reflects frustrating conditions for altcoin investors, with attention focusing on the largest altcoin, Ether (ETH<\/a>), in particular.<\/p>\n

ETH\/BTC recently traded near levels not seen since 2019<\/a>, with even a modest turnaround leading traders to bet on the start of a longer trend inflection.<\/p>\n

Bitcoin dominance crashes.<\/p>\n

ETH\/BTC starts to pump.<\/p>\n

Then altseason starts.<\/p>\n

Any questions? pic.twitter.com\/SOuVWx7nLK<\/a><\/p>\n

\u2014 Mister Crypto (@misterrcrypto) May 4, 2025<\/a><\/p>\n

\u201cBitcoin Dominance is now in the process of positioning itself for what will most likely be its final leg in its Macro Uptrend before a major collapse,\u201d Rekt Capital predicted in an X update<\/a> on May 1.<\/p>\n

\u201cThe road to 71% continues on successful retest of 64%. But it is the Final Countdown.\u201dBitcoin crypto market cap dominance 1-month chart. Source: Rekt Capital\/X<\/em><\/p>\n

Rekt Capital previously observed that 71% marks long-term tops for Bitcoin dominance. The last \u201caltseason,\u201d he argued earlier this year, ended in 2024<\/a>.<\/p>\n

Some, however, see the latest dominance rise diverging from historical norms. For Thomas Fahrer, co-founder of crypto reviews portal Apollo, this is due to increasing institutional demand for BTC.<\/p>\n

\u201cThis cycle is different because when Blackrock & Saylor buy Bitcoin they just hold it. They don’t swap them for alt coins,\u201d he wagered<\/a> last week, referring to ongoing purchases<\/a> by the US spot Bitcoin exchange-traded funds, or ETFs, as well as<\/a> business technology firm Strategy.<\/p>\n

Bitcoin sentiment shifts from \u201cideal buy time\u201d <\/h2>\n

As the Crypto Fear & Greed Index<\/a> hovers in \u201cneutral\u201d territory, analysis is reiterating the risks of \u201cFOMO\u201d returning to the market.<\/p>\n

Related:\u00a0<\/strong><\/em>Bitcoin price cools going into Fed rate hike week, HYPE, AAVE, RNDR, FET still look bullish<\/strong><\/em><\/a><\/p>\n

Crypto Fear & Greed Index (screenshot). Source: Alternative.me<\/em><\/p>\n

In its latest market update<\/a> on May 1, research firm Santiment revealed a turnaround in social media user expectations for BTC price performance.<\/p>\n

\u201cWe can see that social media was making lower price calls ($10K\u2013$69K) during the stretch between Apr 6\u201318, 2025,\u201d it wrote about the environment after Liberation Day.\u00a0<\/p>\n

\u201cThis was the ideal buy time. After prices eventually hit a temporary plateau at the end of April, high price calls ($100K\u2013$159K) are now greatly exceeding lower calls.\u201d<\/p>\n

Santiment previously warned that \u201cFOMO\u201d among new investors<\/a> may hamper Bitcoin\u2019s attempts to preserve higher prices for longer.<\/p>\n

\u201cOverall levels of discussions toward Bitcoin remain quite steady, currently at about 25% of all asset topics,\u201d it now reports, noting that positive commentary is gaining prevalence.<\/p>\n

BTC price prediction data. Source: Santiment\/X<\/em><\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n

<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) starts the first full week of May with yearly open support in focus ahead of a key US economic policy decision. BTC price action attempts to hold the yearly open as support after some downside at the weekly close, but bullish perspectives remain intact. The US Federal Reserve interest rate decision is the […]<\/p>","protected":false},"author":0,"featured_media":19849,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-19848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-finance"],"_links":{"self":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts\/19848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/comments?post=19848"}],"version-history":[{"count":0,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/posts\/19848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/media\/19849"}],"wp:attachment":[{"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/media?parent=19848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/categories?post=19848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gold.creditcard\/es\/wp-json\/wp\/v2\/tags?post=19848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}