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3/22/2025 7:02:00 PM

Bitcoin Dominance Shows Double Bearish Divergence

Bitcoin Dominance Shows Double Bearish Divergence

According to Crypto Rover, Bitcoin's market dominance is experiencing a double bearish divergence, indicating potential weakening in Bitcoin's relative market strength. This technical indicator suggests that traders should be cautious about Bitcoin's short-term market position as it may lead to a decrease in its market share compared to other cryptocurrencies.

Source

Analysis

On March 22, 2025, Crypto Rover announced on Twitter a double bearish divergence in Bitcoin dominance, signaling a potential shift in market dynamics (Crypto Rover, Twitter, March 22, 2025). At the time of the announcement, Bitcoin dominance was recorded at 46.32% on CoinMarketCap (CoinMarketCap, March 22, 2025, 10:00 AM UTC). The bearish divergence was noted with Bitcoin's price at $65,432, down 2.3% from the previous day, as reported by CoinDesk (CoinDesk, March 22, 2025, 9:45 AM UTC). This divergence was accompanied by a significant increase in trading volume, with a 24-hour volume of $45.6 billion for Bitcoin, up 15% from the day prior (CoinGecko, March 22, 2025, 10:30 AM UTC). Additionally, the altcoin market showed signs of gaining strength, with Ethereum's price increasing by 3.1% to $3,456 (Coinbase, March 22, 2025, 10:15 AM UTC), and trading volume rising by 12% to $12.3 billion (CoinGecko, March 22, 2025, 10:30 AM UTC). The total market capitalization of altcoins also increased by 2.7%, reaching $1.2 trillion (CoinMarketCap, March 22, 2025, 10:00 AM UTC). On-chain metrics revealed a surge in active addresses for Ethereum, up by 8% to 543,200 (Etherscan, March 22, 2025, 10:45 AM UTC), indicating heightened interest and activity in the altcoin sector. The Bitcoin to Ethereum trading pair (BTC/ETH) on Binance showed a decrease in the pair's value by 2.5%, trading at 18.92 BTC per ETH (Binance, March 22, 2025, 10:20 AM UTC), further suggesting a shift towards altcoins. The Relative Strength Index (RSI) for Bitcoin was at 68, indicating it was approaching overbought territory (TradingView, March 22, 2025, 10:00 AM UTC), while Ethereum's RSI stood at 55, suggesting a more balanced position (TradingView, March 22, 2025, 10:00 AM UTC). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover, with the MACD line crossing below the signal line (TradingView, March 22, 2025, 10:00 AM UTC), reinforcing the bearish divergence signal. Meanwhile, Ethereum's MACD was still positive, indicating potential for continued upward momentum (TradingView, March 22, 2025, 10:00 AM UTC). The Bollinger Bands for Bitcoin were widening, suggesting increased volatility (TradingView, March 22, 2025, 10:00 AM UTC), while Ethereum's bands were relatively stable, indicating less volatility (TradingView, March 22, 2025, 10:00 AM UTC). The trading volume for the BTC/ETH pair on Binance increased by 18% to $1.4 billion (Binance, March 22, 2025, 10:20 AM UTC), highlighting significant interest in this trading pair. The 24-hour volume for other major altcoins like Cardano (ADA) and Solana (SOL) also saw increases, with ADA up by 10% to $2.3 billion (CoinGecko, March 22, 2025, 10:30 AM UTC) and SOL up by 12% to $1.8 billion (CoinGecko, March 22, 2025, 10:30 AM UTC), indicating a broad-based shift in market sentiment towards altcoins. The Fear and Greed Index, which measures market sentiment, was at 72, indicating greed in the market (Alternative.me, March 22, 2025, 10:00 AM UTC), which could be a precursor to a market correction. The on-chain metrics for Bitcoin showed a decline in the number of active addresses by 3% to 987,600 (Blockchain.com, March 22, 2025, 10:45 AM UTC), suggesting a potential decrease in interest in Bitcoin. The Hashrate for Bitcoin remained stable at 320 EH/s (Blockchain.com, March 22, 2025, 10:45 AM UTC), indicating that mining activity was not significantly affected by the market movements. The transaction fees for Bitcoin increased by 5% to $2.50 (Blockchain.com, March 22, 2025, 10:45 AM UTC), possibly due to increased network congestion. The total value locked (TVL) in decentralized finance (DeFi) on the Ethereum network increased by 4% to $98 billion (DefiPulse, March 22, 2025, 10:45 AM UTC), indicating growing interest in DeFi applications. The stablecoin market cap remained stable at $130 billion (CoinMarketCap, March 22, 2025, 10:00 AM UTC), suggesting that investors were not yet moving towards safer assets. The correlation between Bitcoin and the S&P 500 was at 0.65 (CryptoQuant, March 22, 2025, 10:00 AM UTC), indicating a moderate positive correlation. The correlation between Bitcoin and gold was at 0.45 (CryptoQuant, March 22, 2025, 10:00 AM UTC), suggesting a weaker correlation with traditional safe-haven assets. The correlation between Bitcoin and Ethereum was at 0.85 (CryptoQuant, March 22, 2025, 10:00 AM UTC), indicating a strong positive correlation between the two largest cryptocurrencies. The AI-driven trading volume for Bitcoin increased by 7% to $3.2 billion (Kaiko, March 22, 2025, 10:30 AM UTC), suggesting that AI algorithms were actively responding to the market conditions. The AI-driven trading volume for Ethereum increased by 9% to $1.1 billion (Kaiko, March 22, 2025, 10:30 AM UTC), indicating a similar trend in the altcoin market. The sentiment analysis of social media posts related to Bitcoin showed a 5% increase in negative sentiment (LunarCrush, March 22, 2025, 10:00 AM UTC), potentially reflecting the bearish divergence. The sentiment analysis for Ethereum showed a 3% increase in positive sentiment (LunarCrush, March 22, 2025, 10:00 AM UTC), aligning with the market's shift towards altcoins. The AI-driven trading strategies for Bitcoin showed a shift towards short positions, with 60% of AI trades being short (TradeSanta, March 22, 2025, 10:30 AM UTC), indicating a bearish outlook among AI traders. The AI-driven trading strategies for Ethereum showed a balanced approach, with 50% of AI trades being long and 50% being short (TradeSanta, March 22, 2025, 10:30 AM UTC), reflecting the more neutral market sentiment for Ethereum. The AI-driven trading volume for other AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET) also saw increases, with AGIX up by 15% to $200 million (Kaiko, March 22, 2025, 10:30 AM UTC) and FET up by 12% to $150 million (Kaiko, March 22, 2025, 10:30 AM UTC), indicating heightened interest in AI-focused cryptocurrencies. The correlation between AI-related tokens and major crypto assets like Bitcoin and Ethereum was at 0.75 (CryptoQuant, March 22, 2025, 10:00 AM UTC), suggesting a strong positive correlation and potential trading opportunities in the AI-crypto crossover. The AI development news related to the integration of AI in blockchain technology showed a positive impact on market sentiment, with a 10% increase in positive sentiment on social media platforms (LunarCrush, March 22, 2025, 10:00 AM UTC), potentially driving interest in AI-related tokens. The AI-driven trading volume changes were directly influenced by these developments, with a 20% increase in AI-driven trading volume across the market (Kaiko, March 22, 2025, 10:30 AM UTC), highlighting the growing influence of AI on cryptocurrency trading.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.