Bitcoin’s (CRYPTO: BTC) 6% rally over the past seven days has technical analysts cautiously bullish about its near-term prospects.
What Happened: The apex cryptocurrency briefly tapped the $100,000 mark on Wednesday following cooler-than-expected inflation data but remains below the six-figure mark, trading around $97,600 at the time of writing.
Prominent technical analyst Kevin highlighted on Wednesday that Bitcoin remains in a falling wedge pattern, a bullish structure that necessitates caution until Bitcoin surpasses $104,000
“It’s not time to get overly bullish yet; there’s still a lot of work to do,” he noted.
Kevin also pointed out that Bitcoin's dominance trend aligns with expectations.
A sustained breakdown of Bitcoin dominance below 54.51% could mark a turning point, potentially leading to a lasting “altcoin season.”
According to CoinMarketCap, Bitcoin dominance, Bitcoin’s share of the total cryptocurrency market capitalization, currently stands at 56.53%.
On Dec. 9, 2024, when BTC traded at $101,000, dominance was at 53.9%, with Ethereum at 13% and other altcoins at 33.1%.
Also Read: Bitcoin Adoption Still Early, BlackRock Says
What's Next: Daan Crypto Trades observed a recurring cycle for Bitcoin, with explosive rallies in Q1 and Q4 of 2023 and 2024, contrasted by slower, sideways price movements in Q2 and Q3. “
Unless investors sold near the top, many were sidelined during Bitcoin’s rapid 50% surges within one to two months,” he noted.
He emphasized that modest drawdowns made a “spot & chill” strategy effective for most Bitcoin investors.
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