Bitcoin in recent weeks has clearly shown that market sentiment is not favorable. As data from TradingView show, every upward impulse is quickly tempered by selling pressure.

Bitcoin faces further decline

The recent trend rising to 114,000 dollars ended with a sharp drop, clearly indicating the dominance of sellers. This pattern has repeated itself since reaching the all-time high. Growth phases are longer, but the drops themselves are much stronger in percentage terms.

The most critical point the market is currently watching is the boundary of the last local low from September 1 at 107,000 dollars. If this level holds, the price is likely to move sideways. However, if it breaks, it could open space for a more significant and long-term correction. Therefore, it is important to answer the question of how far the BTC price might fall.

For further development, two support zones with historically high transaction volumes will be key: from 104,000 to 106,000 dollars and from 94,000 to 99,000 dollars. These areas are where traders entered in larger amounts and therefore have the potential to stop or at least slow down a potential decline. If the trend cannot reverse here either, space will open for even deeper drops, which could trigger further market panic.

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Bitcoin dominance rises again

Besides price development, Bitcoin’s dominance also deserves attention. The recent reversal shows that its market share decline stopped at this year’s low. From a value of 57.46 %, dominance bounced back to currently 58.95 % and it looks like growth could continue.

This dynamic has significant implications for altcoins. History shows that during Bitcoin declines, alternative cryptocurrencies suffer even greater losses. If the correction continues, digital currencies could come under much more pressure than Bitcoin itself. Additionally, some investors shift back to Bitcoin in times of uncertainty, which further increases its dominance and weakens altcoins.