Amidst the notable surge of alternative cryptocurrencies, concerns have arisen over a potential threat to Bitcoin (BTC) in the form of a “rollback” that could nullify its recent upward trend.
Renowned analyst and social media figure Matthew Hyland took to X (formerly Twitter) on December 9, urging caution regarding BTC's price trajectory. Bitcoin soared to a fresh 19-month peak against the US dollar, hitting $44,729 on Bitstamp on December 8, as the cryptocurrency retained its bullish momentum while Wall Street concluded the week.
However, Bitcoin retraced below the $44,000 level thereafter, entering a consolidation phase within the day's trading range, TradingView. Hyland, on the other hand, raised red flags about potential trouble in the ongoing bull market, despite the coin's substantial 60% surge since early October.
He highlighted a particular area of concern—the fluctuating dominance of Bitcoin in the broader cryptocurrency market capitalization.
Hyland emphasized, "Dominance is changing based on the short divergence noted. Already giving back all the gains from the previous days' rally," in an X post.
He further explained, “If it breaks and closes below 51.81, it would be the first lower low in over a year, ending the uptrend and potentially forming a top.” Hyland directed attention to Bitcoin’s recent dominance surge, peaking at 55.26% on December 6, its highest level since April 2021. However, Bitcoin swiftly reversed course, and the upward trajectory has moderated, with dominance currently resting at 53.4% at the time of the statement.
