Bitcoin price rebound and market dominance
Bitcoin price regained momentum on September 5, rising to $113,000, its highest level since August 28. This rebound occurred in tandem with an increase in market dominance to 59%, marking a two-week peak for the leading cryptocurrency. The rally unfolded ahead of the U.S. jobs report, reinforcing technical indicators that suggested a bullish reversal in trend.
Options expiry catalyzes movement
The price recovery coincided with the expiry of $3.28 billion worth of Bitcoin options on Deribit at 8:00 UTC. According to the max pain theory, option sellers sought to guide spot prices toward $112,000 to minimize losses for institutional counterparties. This alignment between spot price and the max pain point for the first time added weight to the downside pressure that historically precedes significant directional moves.
Technical and on-chain signals
- Price broke above the August 28 high of $112,000 and achieved a higher high since the mid-August peak.
- Market dominance climbed from 57.5% to 59%, reflecting renewed capital inflows into Bitcoin relative to altcoins.
- On-chain data indicated a rise in whale accumulation, with several large transactions moving coins off exchanges.
- Open interest in Bitcoin futures remained elevated, suggesting sustained institutional engagement.
Analysts highlight that the confluence of these metrics contrasts with the broader cryptocurrency market, which remained relatively subdued. Ethereum and other major altcoins experienced minor fluctuations, signaling that capital rotations into Bitcoin may represent a strategic repositioning ahead of seasonal catalysts. The sustained dominance and price strength increase the probability of further upside, contingent on macroeconomic indicators and institutional flows.
Market participants now monitor the upcoming U.S. jobs report for further catalysts. A stronger-than-expected report could bolster risk appetite and extend the Bitcoin rally, while weaker figures may trigger profit-taking and a retest of support around $110,000. In the broader context, the alignment of key technical factors and high-profile on-chain metrics underscores the resilience of Bitcoin in the current macro environment.
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