Bitcoin’s dominance will soon collapse as the market remains steady over the past several months and the stability comes as most altcoins shed their value or hold up against their Bitcoin trading pairs. Let’s see more in the upcoming Bitcoin price news.
Until the number one cryptocurrency sheds some of the dominance, most altcoins will not be able to gain any momentum further. Analysts do believe that the “altseason” could be imminent as Bitcoin’s dominance will soon collapse. BTC remained in control over the market in the past few months. The altcoins have been closely tracking the price action while not being able to incur the independent momentum with only a few exceptions. The aggregated crypto market, Bitcoin excluded, started to gain some independent momentum back in February which happens to be when Bitcoin’s dominance hit a yearly low of 60%.
The selling pressure placed on the nascent market increased and investors started fleeing their altcoins in favor of the sense of security that Bitcoin provides because of its liquidity. The dominance over the market has increased dramatically in the time since and now analysts believe that this trend could soon shift but it is possible that the dominance will crater up by 8% which could provide the altcoins with a major boost. Bitcoin’s dominance over the aggregated crypto market sits at around 65% at the time of writing which is a sharp climb from the yearly lows of under 60% but then a decline from the high of 68% which was set at the start of the year.
The dominance provides significant insight into the trends that are seen amongst investors as higher dominance usually suggests that there is no more fear where the market trend will end up next. One analyst believes that more capital will flow away from Bitcoin and towards the altcoins, as investors start growing less fearful, which could cause BTC to cede between 5-8% of its dominance:
“About two months later and I believe we are finally ready to make the move down to 57-60% dominance. You know what that means.”
Other analysts are noting that this could decline but it will not come swiftly as Bitcoin’s dominance has been guided higher by the trendline which persisted for more than 800 days. Another trader spoke about this in a recent tweet explaining that he is cautious on altcoins until the trendline is broken:
“Going to be extra cautious this week on alts. While most look very bullish we are still riding this 882 day trendline. I believe BTC is more volatile this next week thus have to be more careful with alts. Could get some amazing entries and bullish retests on them.”
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