Bitcoin dominance collapses to zero on TradingView, debunked as glitch

Bitcoin faced significant price turbulence on December 26, disrupting the typically calm trading conditions seen during the holiday period. A glitch in TradingView’s chart erroneously displayed Bitcoin crypto market dominance as 0%, triggering panic among traders and market participants.

Social media reports highlighted a sharp price decline, with Bitcoin momentarily falling by 4.8% to trade near $95,000. However, the anomaly was short-lived, as it has now corrected to 58.97%.

One user on X drew attention to the issue, remarking, “Bitcoin Dominance Collapses to Zero on TradingView! It appears to have been a temporary drop, as dominance has now recovered.”

Bitcoin price fluctuations caused by panic sales

After Bitcoin’s price experienced a downturn fueled by market panic, it settled into a narrow range between $95,000 and $96,000. Data from CoinGlass revealed that roughly $33 million worth of long Bitcoin positions were liquidated within four hours during the event. 

In the last 24 hours, there has been a total of $57.46 million in liquidations, which means the selling spree dropped when the glitch was fixed.

Crypto market liquidations: Source – CoinGlass

Market analysts highlighted the cascading effects of the TradingView glitch. Marc Bernegger, co-founder of crypto fund AltAlpha Digital, stated that the error contributed to trader panic and subsequent volatility.

“The latest fluctuations in Bitcoin price, dropping to around $95,000 from near $100,000, appear to have been influenced by a glitch on TradingView,” Bernegger commented. He believes the misrepresentation of Bitcoin’s dominance at 0% led to market uncertainty and the liquidation of significant long positions.

Another analyst, Lin, echoed similar sentiments, adding emphasis to the compounded effects of the glitch, among other reasons. 

“The panic selling from the technical error into a low liquidity environment, amplified by strategic profit-taking and institutional movements of $338 million in Bitcoin ETF outflows on Christmas Eve, are the most likely catalysts for the retreat in the last 24 hours,” Lin noted.

Bitcoin dominance and ETF dynamics

Looking at the charts, the leading cryptocurrency by market cap had been trading at $96,268.32 before the event but has now dropped to $95,300, reflecting a 2.54% drop over 24 hours and a 2.72% decline over the past week. 

BTC Price movement: Source TradingView

Analysts have observed consolidation on the charts, with Bitcoin facing strong resistance at $97,000 and critical support near $94,700. Relative Strength Index (RSI) levels hovered near neutral, suggesting the coin is building a balanced momentum.

BTC’s market dominance has been a focal point for traders in recent weeks as it fluctuated near critical levels. In mid-November, dominance briefly surpassed 61.5% before reversing. This reversal renewed hopes among some analysts for an “alt season,” a period when altcoins outperform BTC.

A trading account on X, Aqua, denoted the market sentiment: “BTC Dominance reached the 2021 breakdown level and rejected. I think BTC Dominance peaked, and ALTs will start outperforming $BTC in the coming months. Finally, we will see the true ALTs season soon.”

Meanwhile, US spot BTC exchange-traded funds (ETFs) experienced a resurgence in positive inflows post-Christmas day, totaling $475 million. This brought cumulative net inflows to $35.96 billion, signaling renewed investor interest. 

Thursday, 12/26: US spot Bitcoin ETFs, back to positive inflows of $475M, cumulative net inflow up to $35.96B, ETFs with most inflows were $FBTC ($254M) & $ARBK ($186.9M), Blackrock $IBIT investors were also buying again with inflows of $56.5M, BTC ETF investors buying the dip pic.twitter.com/sc6lCz6Whh

— Bitcoin Insights (@BitcoinInsight1) December 27, 2024

Among the top-performing ETFs, FBTC led with $254 million in inflows, followed by ARBK with $186.9 million. BlackRock’s IBIT also attracted investor attention, recording inflows of $56.5 million as buyers are seemingly taking advantage of the recent dip in BTC prices.