Current Bitcoin Market Status
Bitcoin has recently dropped to $103,000, nearing the target price of $102,200. Earlier, BTC experienced a slight pullback, surging to $110,000 over a four-day period. As previously noted, any price action occurring before Bitcoin reaches $102,200 is considered less significant, as it may involve bull and bear traps, as well as shifts in market sentiment.
Currently, Bitcoin has fallen below the $108,000 support level and is likely heading towards a retest of $102,200. Historical data from past significant crashes shows that Bitcoin often consolidates in this price range for a period before experiencing another upward trend.
Bitcoin Dominance and Altcoin Performance
In recent times, Bitcoin Dominance has shown an upward trend. The accompanying chart illustrates a sharp increase in dominance to 63% on the day of the recent market crash, followed by a rapid return to below 60%. For strong altcoin pumps to occur, it is essential for Bitcoin Dominance to remain below 59.25%.
Market Sentiment and Liquidation Analysis
The overall market sentiment has been reset. For the past four months, the sentiment was characterized by "Greed." The recent market correction has pushed the sentiment towards "Extreme Fear," although it has since recovered back to "Greed" levels.
Positively, the liquidation rate has been minimal following the recent crash. Despite Bitcoin's significant volatility, there have not been extensive liquidation events. This suggests a lack of excessive leverage within the market system.
The Leverage Ratio also shows a notable decrease on the day of the crash. Crucially, leverage has not increased significantly after this drop, which is a departure from previous market downturns where leverage typically rises swiftly.
Future Outlook and Investment Strategy
The market will be closely watching the retest of the $102,200 level in the coming days. This period might extend into November. October still holds the potential to influence market direction. The strategy will be to increase positions upon confirmation of the $102,200 retest; until then, a cautious wait-and-watch approach is advised.
Projects such as TAO are demonstrating resilience. Cryptocurrencies that maintain their value against Bitcoin's current decline are likely to be the top performers when Bitcoin enters a period of sideways trading.