Bitcoin Dominance ($BTC.D) - Bitcoin Gaining Strength
Every time I've posted a Bitcoin Dominance chart it's been advocating for an Altcoin season. This time however, looking at the 2-Day chart it's obvious that Bitcoin is gaining strength in terms of market cap compared to the rest of the altoins.
The Bitcoin Dominance chart is a great indicator of where the bitcoin & Altcoin markets are headed and what we should expect.
From May-Sept. we saw the Dominance drop a significant amount in a very short period of time from 67% all the way down to 57%. This 10% drop was caused by the new and emerging DeFi projects such as YFI, YFII, and many others. The summer was definitely a little DeFi mania where everybody seemed to be making a killing off of these projects. Now the tables are turned and these yearn finance coins are dropping like flies heavy in sats while the king, BTC is re-establishing its dominance over the market.
I am in no way shape or form a Bitcoin maximalist, just here to spread information about what i'm seeing on the Bitcoin Dominance chart.
At the moment, BTC.D is currently fighting to close upwards out of this downtrend that was formed in July of last year after the Dominance levels hit its peak of 72.04%. The price is also holding this uptrend formed 3 years ago after the ICO mania of 2017, so where do we go from here?
Bullish Scenario (Rising Dominance %)
Bearish Scenario (Falling Dominance %)
Right now is the critical decision point for Bitcoin Dominance which will determine the outlook for the market for the next few months to come going into the next year.
As always please do your own research, I am not a financial advisor.
The Bitcoin Dominance chart is a great indicator of where the bitcoin & Altcoin markets are headed and what we should expect.
From May-Sept. we saw the Dominance drop a significant amount in a very short period of time from 67% all the way down to 57%. This 10% drop was caused by the new and emerging DeFi projects such as YFI, YFII, and many others. The summer was definitely a little DeFi mania where everybody seemed to be making a killing off of these projects. Now the tables are turned and these yearn finance coins are dropping like flies heavy in sats while the king, BTC is re-establishing its dominance over the market.
I am in no way shape or form a Bitcoin maximalist, just here to spread information about what i'm seeing on the Bitcoin Dominance chart.
At the moment, BTC.D is currently fighting to close upwards out of this downtrend that was formed in July of last year after the Dominance levels hit its peak of 72.04%. The price is also holding this uptrend formed 3 years ago after the ICO mania of 2017, so where do we go from here?
Bullish Scenario (Rising Dominance %)
- BTC.D finds a clean close out of this downtrend and continues slowly rising until eventually topping out at 70.24%, a lower high compared to last year's high.
- We could see this move play out around the end of the year to early 2021.
Bearish Scenario (Falling Dominance %)
- BTC.D fails to breakout of this downtrend and starts to fall back down to the uptrend and even blow that to form new lows
- We could see this move play very soon
Right now is the critical decision point for Bitcoin Dominance which will determine the outlook for the market for the next few months to come going into the next year.
As always please do your own research, I am not a financial advisor.
