- Bitcoin’s dominance in the crypto market is on the rise, leading investors to ponder their investment choices between established Bitcoin and promising altcoins.
- Long-term trend-following indicators support the idea of Bitcoin outperforming altcoins and possibly undoing some of the gains made by altcoins in early 2021.
- Experts also note the potential shift of focus toward the Fibonacci resistance level at 60.17% once Bitcoin’s dominance rate consolidates its position above the June high of 52.18%.
Bitcoin dominance reaches 2.5-year high; What does this movement mean? Will the price start to rise?
Bitcoin’s Dominance Surges in the Crypto Market
Bitcoin’s dominance in the crypto market is on the rise, leading investors to ponder their investment choices between established Bitcoin and promising altcoins. The surging prices of cryptocurrencies, especially Bitcoin, have put investors in a critical decision-making position, closely monitoring Bitcoin prices as they might trigger a crypto market boom if they stay above $25,000.
Bitcoin’s Dominance Reaches a 2.5-Year Peak
Despite recent market fluctuations, Bitcoin’s dominance rate has hit a remarkable 52.45%, a level not seen in 2.5 years. This increase marks a significant shift in the market trend that had favored alternative cryptocurrencies over Bitcoin earlier in 2021.
Technical Analysis and Market Outlook
Examining the broader market context, this rise in Bitcoin’s dominance aligns with a bullish breakout observed in June, suggesting the end of a prolonged consolidation phase. Technical analysis forecasts the persistence of this trend, potentially reverting the decline observed from 60% to 40% during the dynamic bull market of March to April 2021.
Expert Opinions on Bitcoin’s Dominance
Katie Stockton, founder and managing partner at Fairlead Strategies, expresses confidence in Bitcoin’s continued dominance. Long-term trend-following indicators support the idea of Bitcoin outperforming altcoins and possibly undoing some of the gains made by altcoins in early 2021.
Potential Fibonacci Resistance Level
Experts also note the potential shift of focus toward the Fibonacci resistance level at 60.17% once Bitcoin’s dominance rate consolidates its position above the June high of 52.18%. Currently, the dominance rate stands at 51.68%, with implications for altcoins if it remains above 52%.
Key Factors Driving Bitcoin’s Bull Run
The recent surge in Bitcoin’s dominance is attributed to various key factors, including the hash rate, the US election, Bitcoin ETFs, and the halving event. These elements have contributed to Bitcoin’s strong performance, with a market cap exceeding USD 555 billion and a recent 24-hour gain of +2.55%.
Observing Bitcoin’s Resurgence
Bitcoin’s resurgence in dominance is capturing investors’ attention, causing a potential reevaluation of Bitcoin’s merits compared to alternative cryptocurrencies. As market dynamics evolve, the unfolding trend becomes intriguing for the broader crypto space.
