As a seasoned crypto investor with a decade-long journey through the digital asset wilderness, I’ve learned to expect the unexpected and embrace volatility as my trusted companion. Having navigated multiple bull and bear markets, I’ve come to appreciate the unique dynamics that drive Bitcoin (BTC) and its altcoin counterparts.
Since early September 2022, Bitcoin Dominance (BTC.D) has been steadily increasing. Starting at approximately 39%, it’s now up to 59%. This suggests that Bitcoin might soon lose some of its dominance in favor of other cryptocurrencies, known as altcoins.
Bitcoin still the frontrunner
During the majority of this ongoing bull market, Bitcoin (BTC) has generally outperformed other cryptocurrencies, with only a few exceptions. Whenever it seems like a period of altcoins taking the lead might occur, Bitcoin consistently strengthens its position as the dominant cryptocurrency yet again.
At present, Bitcoin has moved beyond its ‘bull flag’ formation and remains the leading contender poised to initiate the next phase of the bull market. However, it’s worth noting that other cryptocurrencies like Solana (SOL) could potentially outperform Bitcoin and influence this scenario.
Could 60% be the top?
Examining the short-term Bitcoin Dominance (BTC.D) graph, we notice that the price is still on an upward trend, however, it appears to be within a rising triangle formation. If the price persists in staying within this triangle, it might encounter the 60% resistance level before either breaking past it or reversing direction.
Total3 ready to break out
The Total3 graph monitors the cost of all cryptocurrencies combined, excluding Bitcoin (BTC) and Ethereum (ETH). This chart might influence the pattern of Bitcoin’s dominance, as a jump above the $637 billion resistance level may signal the onset of an altcoin growth spurt that could potentially reduce Bitcoin’s dominance.
Altcoins can provide more upside
Indeed, this current bull market trend might deviate from past patterns due to the massive institutional investment in Spot Bitcoin ETFs. It’s possible that Bitcoin could maintain its leading position throughout the bull run. However, it’s also argued that as funds pour into Bitcoin, savvy investors may perceive the smaller market caps of altcoins as significant opportunities for larger returns compared to Bitcoin.
Regardless of the direction it takes, this bull market is poised to intensify significantly, bringing about possible dramatic price fluctuations for both Bitcoin and other cryptocurrencies, extending well into the remaining months of this year and even into the early stages of the following one.
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2024-10-25 15:03