Bitcoin’s Dominance Surges
Bitcoin (BTC) is affirming its dominance in the cryptocurrency market, looking to reverse the altcoins’ rally over BTC in 2021. Bitcoin’s dominance rate, which depicts its share of the overall crypto market, increased to 52.45% on Monday.
According to data from the crypto analytic platform TradingView, this is the highest level attained by Bitcoin since April 2021. The recent uptick mirrors the bullish breakout in June 2023, signaling the end of a prolonged period in which Bitcoin held a 38% to 48% dominance.
BTC Eyes Further Dominance
The technical analysis from Fairlead Strategies’ reveals that Bitcoin’s dominance in the crypto market will still spike in the coming days. This represents a reversal of the 60% to 40% decline experienced during the crypto bull market of March-April 2021.
At the time, investors shifted their focus and portfolios away from the relatively more expensive Bitcoin and toward alternative virtual currencies, causing BTC’s dominance rate to decline significantly. Katie Stockton, an executive at Fairlead Strategies, stated that the index is on the verge of extending higher, especially after breaking out of a two-year trading range this summer.
The assessment of the Bitcoin dominance index indicates a positive outlook for the asset’s continued market supremacy, highlighting the potential for long-term growth. Furthermore, Stockton emphasizes the benefits of the recent analysis to crypto investors and enthusiasts, stating that it provides insights into the changing dynamics of the digital currency market.
In addition, the expected rise in Bitcoin’s dominance may impact investment decisions in the coming days. This imminent shift also highlights the volatile nature of the crypto market, with Bitcoin reclaiming its position as the leading asset by market cap.
Long-term projections from indicators and the analysis by Fairlead Strategies align with the projection of increased Bitcoin dominance in the crypto market. They also reveal that the asset’s price is preparing for another bull run to break out of its next resistance level.
According to Stockton, Fairlead Strategies expects BTC to outperform altcoins, further reversing the gains in H1 2021. Once the dominance rate rises above the June 2023 high, its next critical resistance level will be the price corresponding to the 0.6017 Fibonacci level.
The dominance rate is currently 51.68%, but on-chain analysis suggests that this rate will rise soon. The analysis provides valuable insights for investors and market participants, indicating that Bitcoin’s prominence may continue to rise over other digital assets.
Moreover, the possibility of BTC overtaking altcoins’ 2021 gains highlights the changing dynamics of the crypto market. As its dominance rate approaches critical resistance levels, observers are keen to see how this development influences investment decisions for the short-term and long-term holders.
With Bitcoin’s dominance a focal point, the cryptocurrency community is anticipating a further spike in the value of BTC to stabilize the market amid the price fluctuation of major assets. BTC’s price rose sharply yesterday following unconfirmed reports of a US SEC approval of a spot BTC ETF before the regulator official denounced such reports.
At the time of writing, Bitcoin trades at $28,485 with a 3.90% rise in the last seven days, according to current Coingecko data.
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