Bitcoin’s market dominance continues to climb, recently touching 64%, its highest level in more than four years. This resurgence is an important sign post in the cryptocurrency realm. This further illustrates Bitcoin’s strong market position and its increasing dominance over the rest of the cryptocurrency space. The increase has some industry professionals looking anxiously on at a possible turning point for altcoins.
In fact, Bitcoin’s dominance has been on a near nonstop trend upwards since the end of 2022. Currently, it is testing a key resistance zone between 64% and 64.3%. This big $350 level is the major line in the sand that will likely decide the short-term future for altcoins.
Bitcoin’s current dominance is approaching levels not seen since the 2020 bearish market bottom extreme and early 2021 bullish deviation. This latest recovery speaks to Bitcoin’s hold on the market. A bullish dominance means that Bitcoin is getting stronger compared to altcoins. On the other hand, if Bitcoin’s dominance goes down, it might indicate an increase in interest or investment in other digital assets.
Another inverse indicator they have their eyes on is the US Dollar Tether Dominance (USDTD).
"The USDTD is in a rejection zone, as long as it does not close above 6.75% it will be favorable for the market," - a technical analyst
Bitcoin’s dominance is arguably the most important indicator when it comes to predicting altcoin season. A break above the 66% mark could intensify selling pressure on altcoins, potentially leading to a significant downturn in their value. If Bitcoin’s dominance breaks below the 63.45% level, it could trigger an altcoin season rallying many large and smaller-cap assets substantially. This would be a sign that an “altcoin season” is starting.
Bitcoin’s chart strength compared to the rest of the cryptocurrency market is one of the most important factors in Bitcoin’s dominance. Investors and traders closely monitor this metric to gauge the potential performance of altcoins and make informed decisions about their portfolios. Bitcoin’s dominance remains one of the most important factors behind determining whether altcoins do well or not.
Bitcoin’s market dominance rose to its highest level since early 2021, confirming the strength of its current position. Altcoin investors are particularly jittery after this unexpected surge. They are very much on alert for a potential changing of the market’s dynamics.
