$107K Or $135K, What's Next for Bitcoin Price as BTC Dominance Approaches 2020 Resistance

Bitcoin price edged higher on July 10, as it created a fresh record high at $111,999 as interest towards risk assets surged due to optimism about Fed rate cuts happening this year. Following these gains, Bitcoin’s market cap dominance has reached 65%, and it is testing the same resistance level it did in 2020 before a major breakout.

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Bitcoin Dominance Approaches 2020 Resistance As BTC Moves Past ATH

A lot of interest is going towards Bitcoin as most traders become profitable following the recent formation of an all-time high price. As CoinGape reported, the ongoing BTC rally comes as the market looks forward to interest rate cuts in 2025 and the upcoming debate on the CLARITY Act that will pave the way for more friendly crypto regulations in the US.

Due to this surge, the market cap of BTC has surged to $2.21 trillion at press time per CoinMarketCap data, and this has seen its dominance in the crypto market also increase significantly. At press time, this dominance was at 65.38%, which was sitting at a strong resistance level.

Bitcoin Market Cap Dominance (Source: TradingView)The last time that the dominance crossed this level due to an increase in Bitcoin price was in December 2020. Once it rose above this resistance, the metric skyrocketed to 73% in less than two weeks.

Overcoming this resistance level also led to an increase in the BTC price by 36% from $19,000 to $26,000 towards the end of 2020. In case history repeats itself and Bitcoin records the same gains, a 12% increase will take it to $124,000.

Nevertheless, Bitcoin has been facing rejection at this dominance level several times, and there are still no signs to show that this time might be any different, considering that a fresh ATH also marks a strong resistance. Therefore, does this rising dominance suggest that Bitcoin price will crash or rally?

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What’s Next for BTC Price, 107K or $135K?

The technical structure clearly shows a mixed Bitcoin price forecast as BTC enters resistance not only in its dominance, but also in the price performance on the daily chart. Looking at how BTC has been performing since May, it is clear that it is repeating a price fractal whereby a new high tends to precede a correction to the support zone between $102,000 and $103,000.

If history repeats itself, Bitcoin might retreat after forming the recent high, with the immediate support being below $107,000, at the 61.8% Fibonacci level of $106,753. The possibility of this dip happening is further exacerbated by the resistance of the rising parallel channel, which, if the price fails to break, might also cause a correction.

On the other hand, it remains likely that BTC price can defy the odds and move past the resistance zone because of bullish factors in the market, like the upcoming crypto week. If this were to happen, the price may reach $135,000 by getting to the 261.8% Fibonacci level of $134,231.

BTC/USDT: 1-day Chart (Source: TradingView)The rising RSI gives room for Bitcoin price to make more gains because of its value of 62, which is showing that the bullish momentum is significantly strong and there is still room for the coin to make more gains as it is not yet overbought.

To sum up, BTC price is rising, and this is also causing its dominance to sit at multi-year highs, where it is facing strong resistance. Unless there is a shift in buying habits and more traders are willing to buy BTC at all-time highs, there is a risk of a correction to $107,000 happening.

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Frequently Asked Questions (FAQs)

1. How will the surging dominance affect Bitcoin price?

The surging dominance might have a bullish impact on the Bitcoin price if it overcomes the 2020 resistance level and surges higher.

2. Will Bitcoin crash or rally again after forming an all-time high?

Bitcoin will likely retest support around $107,000 after forming its all-time high price as traders take profits at the top.

3. Which factors will influence the BTC price performance?

Some factors that will influence the BTC price performance include the increased likelihood of interest rate cuts and buying activity.

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