Market analysts are pointing to a CME futures gap near $114,000 as a key technical level where Bitcoin could face a significant price correction. This potential pullback scenario arises as traders monitor battles between profit-taking actions and prevailing bullish sentiment.
Concurrently, Bitcoin’s market dominance has shown a notable decline, dropping from approximately 66% to near 60%. This marks its lowest level since early March, indicating a shift in capital towards altcoins. Assets like Ethereum (ETH) and Ripple (XRP) are garnering increased attention and investment from market participants.
Adding to market uncertainty are impending remarks on monetary policy by Federal Reserve Chair Jerome Powell. Investor expectations for interest rate cuts remain subdued, potentially introducing further volatility into the cryptocurrency space.
On-chain analytics underscore a recent rise in Bitcoin inflows to exchanges, suggesting heightened potential for profit realization. Data indicates whale wallet inflows have surged significantly, climbing from around $28 billion to $45 billion, reinforcing the profit-taking narrative.
Given these market dynamics, traders are advised to closely monitor critical Bitcoin support levels and derivatives market liquidation zones as potential triggers for volatility. Market strategists also recommend exploring diversification into altcoins that appear to be benefiting from the current market rotation away from Bitcoin dominance.