The Bitcoin Dominance Index has recorded its most bearish volume session since February 2021, signaling the strongest negative momentum in more than four and a half years. According to analysis by Master Ananda , this breakdown could mark a key turning point in the cryptocurrency cycle, possibly foreshadowing a crash from the six-figure price levels, he said in a TradingView post on July 20. Bitcoin price analysis chart. Source: TradingView Notably, the bearish signal has emerged as Bitcoin ( BTC ) attempts to reclaim the $120,000 level after recently hitting a record high above $123,000. Ananda’s analysis indicates that Bitcoin dominance is breaking down from a steep ascending wedge on the weekly chart, a bearish pattern. The move is backed by a large volume candle, echoing the heavy selling pressure seen during the 2021 and 2022 peaks. At the same time, altcoins are gaining momentum, with Ethereum ( ETH ) and Litecoin ( LIT ) leading the charge, while Solana ( SOL ), Cardano ( ADA ), and XRP are poised to follow. As Bitcoin consolidates near its resistance level, altcoins are steadily rising, signaling a maturing bull market. Master Ananda also pointed out that technical indicators suggest Bitcoin dominance could fall to around 49.16%, aligning with the 0.618 Fibonacci retracement level, a historically strong area of support. A drop to this level would indicate a significant capital rotation from Bitcoin into altcoins. Bitcoin next price level to watch This trend, Ananda said, sets the stage for a major market shift. Once Bitcoin completes its consolidation, it is expected to resume its upward trajectory, with targets projected between $134,000 and $136,000. However, a sudden correction, or even a sharp drop toward $100,000, remains a possibility if Bitcoin dominance continues to erode faster than expected. While Bitcoin’s volume appears to be weakening, social media activity around the asset has surged. Notably, since its climb to a new all-time high, Bitcoin has seen a dramatic spike in social media chatter, fueling concerns of a near-term pullback. According to sentiment platform Santiment , nearly 43% of all crypto-related mentions this week were focused on Bitcoin, marking its highest “social dominance” in years. Analyst Brian Quinlivan noted that this spike suggests rising retail investor FOMO, often a signal of overheated market conditions. Bitcoin social sentiment data. Source: Santiment Bitcoin price analysis At press time, Bitcoin was trading at $118,052, down about 0.3% over the last 24 hours but still up 1.5% over the past week. Bitcoin seven-day price chart. Source: Finbold Technically, Bitcoin’s 50-day simple moving average ( SMA ) sits at $108,727, indicating near-term strength, while the 200-day SMA at $89,326 reinforces the broader uptrend. However, the 14-day relative strength index ( RSI ) at 65.01 suggests approaching overbought territory, raising the risk of a pullback. Featured image via Shutterstock. The post Bitcoin flashes ‘highest bearish’ signal in years; $100,000 crash next? appeared first on Finbold .