As an analyst with over two decades of experience in financial markets, I have witnessed numerous bull and bear cycles, and the current crypto market is no exception. Bitcoin dominance is indeed soaring, and it seems that most altcoins are struggling to keep pace.
Will other altcoins struggle to maintain their presence in the remaining phase of this bull run?
The influence of Bitcoin is steadily increasing, currently standing at approximately 58.47%. It’s recently surpassed previous resistance levels, aiming towards the next potential barrier at around 60%.
Why is Bitcoin getting all the love?
Is it possible that Bitcoin is receiving so much attention, while many other altcoins are struggling, because none of these alternatives have effectively addressed a specific, unique purpose within their respective markets?
It’s generally accepted that when it comes to the world of cryptocurrencies, Bitcoin stands out due to its role as a digital store of value, while stablecoins are recognized for their usefulness in facilitating transactions. Both of these types of crypto have made significant waves and disrupted the respective areas they operate in.
It’s important to note that not every cryptocurrency project will necessarily thrive, but it’s undeniable that the crypto sector as a whole remains a high-risk landscape at this point in time.
Previous bull markets saw Bitcoin Dominance under 40%
During the significant surges of cryptocurrencies in 2017 and again in 2021, there was an abundance of optimism, leading many investors to jump on board, likely with expectations that these promises would be realized. Interestingly, Bitcoin’s dominance dipped to approximately 35.5% at the start of 2018 and dropped slightly below 40% in 2021.
Even though we’re in a bull market right now, Bitcoin’s dominance is consistently climbing higher and to the right. If Bitcoin manages to reach a 60% dominance, potential future targets could be 68% and then 72%. It’s worth noting that back in early 2017, Bitcoin’s dominance was as high as 96%. This means that other cryptocurrencies have become more significant since then.
Looking at the weekly Bitcoin Dominance graph, it’s clear that the trend continues to rise. The question now is if the horizontal barrier at around 58.6% can sustain this uptrend, or whether it might push back against it instead.
Total 3 chart shows bull flag
The chart that monitors the overall market value of cryptocurrencies other than Bitcoin and Ethereum, continues to show a favorable trend. The total market capitalization is forming a bull flag pattern, and the 0.618 Fibonacci level was touched during the recent Japanese stock market downturn.
The Stochastic RSI Momentum Indicator is showing a favorable outlook as its two lines have crossed each other, moving upward and surpassing the 20 level.
OTHERS chart shows strong support for the altcoins
As a researcher exploring the dynamic world of cryptocurrencies, I’ve found a valuable tool called the OTHERS chart, which offers an insightful perspective by monitoring the market capitalization of all cryptos except the top 10. This narrows the focus, providing a clearer image of how altcoins are performing in the market. Currently, the downtrend in this sector is quite evident and pronounced.
Despite the fact that the Fibonacci level at 0.618 is presently supporting the market cap, there’s a significant horizontal barrier just below this point. The Stochastic RSI is on an upward trajectory, suggesting a possible reversal in the downward trend within the next fortnight or so.
It’s yet unclear if this development will evolve into a robust rally that elevates altcoins significantly, potentially reducing Bitcoin’s market dominance.
Read More
Sorry. No data so far.
2024-09-18 14:04